Aira Fitness Center Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$48,694 - $311,850
Franchise Fee
$8,000
Total US Locations
16
Business Summary
Aira Fitness Franchising LLC offers franchises for AIRA FITNESS Businesses, which are 24/7 exercise facilities providing personal training and bootcamp services. These businesses can operate either from a traditional commercial Fitness Center or from a pre-fabricated modular building called a Pod. Fitness Centers typically range from 600 to 2,600 square feet, while Pods are about 400 square feet and generally have a maximum entry limit of one member at a time. Fitness Centers are required to offer bootcamp and personal training, but Pods are not. All locations utilize an access and security system allowing members 24/7 access to any Aira Fitness Business and reciprocal benefits across the system.
Corporate History
Aira Fitness Franchising LLC was organized in Illinois on August 14, 2019. Its predecessor, Aira Fitness LLC (AF), was organized on January 25, 2019, and has been operating Aira Fitness Businesses in Illinois since February 2019. Aira Fitness Franchising LLC began offering franchises in September 2019.
Financial Overview
Investment Range
$48,694 - $311,850
Franchise Fee (Low)
$8,000
Franchise Fee (High)
$30,000
Equipment Costs (Low)
$10,272
Equipment Costs (High)
$140,965
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Aira Fitness Franchising LLC's financial condition, as reflected in its financial statements, calls into question the franchisor's financial ability to provide services and support to franchisees. As of December 31, 2024, Aira Fitness Franchising LLC had negative shareholders' equity of $(4,257) and experienced a net loss of $(22,591) for the year. The company's cash decreased by $(3,033) during 2024. This indicates financial difficulties that may impact the franchisor's capacity to support its franchise system.
Financing Details
Aira Fitness Franchising LLC offers direct financing to franchisees for the Initial Fitness Equipment Package and the Pod Package through its affiliate, Pure Gym Equipment LLC. Franchisees have the option to either purchase or lease these items. For the Initial Fitness Equipment Package, the lease option requires a deposit ranging from $8,472 to $44,359 for a Fitness Center or $5,078 to $13,930 for a Pod. Monthly rent for equipment ranges from $352 to $1,963 for a Fitness Center and $207 to $597 for a Pod, based on the equipment's MSRP. The lease term is three years, converting to month-to-month afterward, with an option to purchase for 50% of MSRP at the end of the term. For the Pod Package, a lease option requires a $12,000 deposit and $600 per month rent for a three-year term, with an option to purchase for $20,000 at the end of the term. Payments are interest-free if paid on time, but past-due amounts accrue 18% interest. A personal guaranty is required for all financing. The franchisor does not arrange for financing with any other sources.
Performance Metrics
Total US Locations
16
Franchised Units
10
Corporate Units
6
Avg Square Footage
1,000
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Aira Fitness Franchising LLC has no litigation to report in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed in this section.
Bankruptcy History
Aira Fitness Franchising LLC has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. No bankruptcy is required to be disclosed in this section for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Aira Fitness Franchising LLC franchisees must provide written notice of their decision to renew between six and twelve months before the current term expires. They must also sign the franchisor's then-current franchise agreement, which may have different terms, fees, and a modified Designated Area. Franchisees are required to comply with modernization requirements for their Aira Fitness Business, be in good standing without any defaults, and provide proof of their ability to maintain possession of the premises if leasing. Additionally, they must comply with current training requirements, execute a general release in favor of the franchisor, and pay a renewal fee of $2,000.
Training & Support Program
Franchisor Assistance
Aira Fitness Franchising LLC provides pre-opening support including site selection criteria and general design requirements for the business. They also furnish lists of approved suppliers and supplies, offer the Initial Fitness Equipment Package for purchase, and provide an operations manual detailing specifications and procedures. Initial training is provided to at least two people in the franchisee's organization, including the general manager. The franchisor also assists with grand opening promotional materials and approves the opening date. Ongoing support includes membership services such as reciprocity and billing administration, updates to approved lists, and system modifications to adapt to changing conditions. Refresher training courses may also be required as determined necessary by the franchisor.
Initial Training Hours
15
Training Location
Online/virtual
Ongoing Support
Aira Fitness Franchising LLC provides ongoing support to its franchisees through various mechanisms after their businesses open. This includes providing membership services, such as administering reciprocity and membership billing, and regularly updating the lists of approved suppliers and supplies. The franchisor also implements System modifications to adapt to evolving market conditions and competitive landscapes. Periodically, franchisees may be required to attend additional refresher training programs, for which fees may be charged, along with travel and living expenses. Franchisees and their managers are also required to attend quarterly sales and operations meetings and annual franchise conventions. Additionally, a monthly technology fee covers human resources support software and other technology development and maintenance services for the franchise system.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
2
Territory Size Requirements
Aira Fitness Franchising LLC defines a Designated Area for each Aira Fitness Business, which will be a radius of 1 to 3 miles from the Authorized Location. The exact size and definition depend on the nature of the area and can be further defined by factors such as zip codes, natural or man-made boundaries, political boundaries, and traffic patterns. When determining the Designated Area, the franchisor considers population density, cultural demographics, household composition and income, population growth trends, and the density of residential and business entities.
Staffing Notes
Aira Fitness Franchising LLC requires franchisees to staff their Aira Fitness Business with enough managers and employees to operate in compliance with the agreement, the operations manual, and to provide proper customer service during all hours of operation. The franchisee's Principal (majority owner) or a general manager must devote full-time efforts to on-premises management. The general manager must complete all required training and is responsible for day-to-day operational decisions, without engaging in other business activities that interfere with their role. Franchisees are solely responsible for all employment matters, including hiring, discharging, training, wage and hour compliance, personnel policies, benefits, record keeping, scheduling, supervision, and discipline of employees, regardless of any advice received from the franchisor. Aira Fitness Businesses are generally small, owner-operated gyms where the owner often leads personal training and fitness classes, potentially with one additional trainer.