Under what conditions will Aira Fitness not require or accept payment of initial franchise fees?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In lieu of an impound of franchise fees, the Franchisor will not require or accept the payment of any initial franchise fees until the franchisee has (a) received all pre-opening and initial training obligations that it is entitled to under the franchise agreement or offering circular, and (b) is open for business. Because franchisor has material pre-opening obligations with respect to each franchised business Franchisee opens under the Multi- Unit Development Agreement, payment of the franchise fee will be released proportionally with respect to each franchise outlet opened and until franchisor has met all its pre-opening obligations under the Agreement and Franchisee is open for business with respect to each such location.
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, there are specific conditions under which the company will defer or not require payment of initial franchise fees, particularly in certain states and under specific agreements. For franchisees in Illinois, the payment of initial franchise fees is deferred until Aira Fitness has met its initial obligations to the franchisee, and the franchisee has commenced business operations. This requirement was put in place by the Office of the Illinois Attorney General due to Aira Fitness's financial condition.
For franchisees entering into a Multi-Unit Development Agreement, Aira Fitness will not require or accept payment of any initial franchise fees until the franchisee has received all pre-opening and initial training obligations outlined in the franchise agreement or offering circular and is open for business. The payment of the franchise fee will be released proportionally with respect to each franchise outlet opened and until Aira Fitness has met all its pre-opening obligations under the Agreement and Franchisee is open for business with respect to each such location.
Similarly, in Virginia, the Virginia State Corporate Commission's Division of Securities and Retail Franchising requires Aira Fitness to defer payment of the initial franchise fee and other initial payments until Aira Fitness has completed its pre-opening obligations under the franchise agreement. These deferral policies are designed to protect franchisees by ensuring that Aira Fitness fulfills its initial obligations before receiving franchise fees. Prospective franchisees should carefully review the specific addenda applicable to their state and the terms of their franchise or multi-unit development agreement to understand the exact conditions for fee deferral.