Aira Fitness Logo

Aira Fitness

Aira Fitness Franchising LLC
https://www.airafitness.com
1-815-529-7260
600 Route 59, Ingleside, IL 60041

Initial Investment Range

$48,694 to $311,850

Franchise Fee

$41,894 to $177,653

The franchise offered is an Aira Fitness Business, which offers a 24/7 exercise facility with personal training and bootcamp services.

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Aira Fitness April 19, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
4
2
4

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Aira Fitness Franchising LLC (Aira Fitness) discloses financial instability as a Special Risk. This is confirmed by its audited 2024 financial statements, which show a negative net worth of $(4,257) and a net loss of $(22,591). This condition raises concerns about the company's ability to provide ongoing support and meet its obligations to you. The State of Illinois has required Aira Fitness to defer collecting initial fees due to this financial weakness.

Potential Mitigations

  • A franchise accountant must thoroughly review the complete financial statements, including all footnotes and the negative net worth.
  • Discuss the implications of the disclosed financial weakness and negative equity with your financial advisor to assess long-term viability.
  • Your attorney should confirm the protections offered by any state-mandated fee deferral and its impact on your risk.
Citations: Item 21, Exhibit B, Illinois State Addendum

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a significant risk. In 2022, the system began with two franchised units, and both ceased operating within the year (one termination, one reacquisition by Aira Fitness). This represents a 100% failure rate for the initial franchisee cohort, which is a critical indicator of potential systemic problems, lack of profitability, or inadequate support in the system's early stages. This history suggests a very high risk for new operators entering the system.

Potential Mitigations

  • It is imperative to contact former franchisees listed in Item 20 to understand the specific reasons for their departure, with questions framed by your attorney.
  • Your business advisor should help you analyze the underlying causes of this high initial failure rate.
  • An accountant should help you model a worst-case financial scenario based on this historical data.
Citations: Item 20

Rapid System Growth

High Risk

Explanation

The franchise system is expanding very quickly, growing from two to ten franchised outlets in 2024. This rapid growth, combined with the franchisor's negative net worth and recent net loss as shown in Item 21, raises significant questions about whether its support infrastructure, training capacity, and quality control systems can adequately serve a rapidly increasing number of franchisees. Overexpansion can strain resources, leading to insufficient franchisee support.

Potential Mitigations

  • In discussions with the franchisor, your business advisor can help you probe their specific plans for scaling support infrastructure to match unit growth.
  • Interviewing a range of existing franchisees, both new and established, about the current quality and responsiveness of franchisor support is crucial.
  • Your accountant must review Aira Fitness's financials to assess if they possess the resources to sustain this growth without service degradation.
Citations: Item 20, Item 21

New/Unproven Franchise System

High Risk

Explanation

Aira Fitness is a relatively new franchisor, having started offering franchises in late 2019. This limited operating history, combined with the 100% turnover of its first two franchisees in 2022, indicates the business model and support systems may be unproven. Investing in a young system carries higher risks related to brand recognition, operational refinement, and long-term stability. The franchisor's ability to navigate challenges and sustain support is less established.

Potential Mitigations

  • A thorough due diligence investigation into the founders' and management's direct experience in both the fitness industry and in managing a franchise system is essential, with help from your business advisor.
  • Speaking with the earliest available franchisees from the Item 20 list will provide firsthand insight into the system's evolution and challenges.
  • Your accountant should carefully assess the franchisor's capitalization and financial stability given its short history.
Citations: Item 1, Item 2, Item 20

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business model, which is a 24/7 exercise facility with personal training and bootcamp services, operates in a well-established and competitive market. While it has unique components like the optional 'Pod' model, the core offering is not based on a short-term trend or fad, which helps mitigate the risk of a rapid decline in consumer interest.

Potential Mitigations

  • A business advisor can help you conduct independent market research to confirm long-term consumer demand for these types of fitness services in your area.
  • Reviewing the franchisor's plans for service innovation and adaptation in Item 11 can provide insight into its long-term strategy.
  • Your financial advisor should help you assess the business model's resilience to economic shifts and local competition.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

Item 2 reveals that some key management personnel lack extensive prior experience in franchising or have concurrent employment outside the franchise. For instance, the Chief Operating Officer also works as a Grade Control Specialist for a tractor company, and other support executives have backgrounds in fields like dental assistance and travel consulting. This could potentially impact the quality and depth of strategic guidance and operational support available to you.

Potential Mitigations

  • Question the franchisor directly about the roles and time commitments of key personnel, which your business advisor can help assess.
  • When speaking with current franchisees, specifically inquire about the quality, expertise, and responsiveness of the support team.
  • Your attorney can help you understand the contractual obligations for support outlined in Item 11 to see what is guaranteed.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 does not indicate that Aira Fitness is owned or controlled by a private equity firm. The management team described in Item 2 appears to be founder-led. Therefore, risks specifically associated with a private equity firm's typical focus on short-term returns and a predetermined exit timeline do not appear to be present in this case.

Potential Mitigations

  • It is still prudent to ask the franchisor about any plans for a future sale of the company, with guidance from your attorney.
  • A business advisor can help you research the background of the principal owners to confirm the ownership structure.
  • Your attorney should review the assignment clauses in the Franchise Agreement to understand your rights if the system is sold in the future.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 clearly states, 'We have no parent company.' The franchisor entity, Aira Fitness Franchising LLC, appears to be the top-level entity in the organizational structure presented. Therefore, the risk of needing to evaluate the financials or stability of an undisclosed or separate parent company is not applicable here.

Potential Mitigations

  • Your attorney can verify the corporate structure and confirm the absence of a controlling parent entity.
  • An accountant should still thoroughly review the provided franchisor financials, as their stability is a key risk factor on its own.
  • When speaking with the franchisor, you can confirm that there are no other entities that guarantee its performance or are essential to its operations.
Citations: Not applicable

Predecessor History Issues

Medium Risk

Explanation

Item 1 discloses a predecessor entity, Aira Fitness LLC. While the FDD does not report any required litigation or bankruptcy history for this predecessor in Items 3 and 4, the highly concerning franchisee turnover data from 2022 occurred under the system's original structure. This indicates that potential systemic issues may have been inherited by the current franchising entity, representing a historical risk that is not captured by the legal disclosures alone.

Potential Mitigations

  • Your attorney should carefully review all disclosures related to the predecessor and the transition to the current franchisor entity.
  • Speaking with long-term employees or the earliest available franchisees can provide insight into the system's history and any inherited issues.
  • A business advisor can help you research the public record of the predecessor company for additional context.
Citations: Item 1, Item 20

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that 'No litigation is required to be disclosed in this Item.' This indicates there are no pending or recent lawsuits against Aira Fitness, its predecessor, or its management involving claims of fraud, securities violations, or other material actions as defined by franchise disclosure laws. The absence of such litigation is a positive indicator, though it does not eliminate all other business risks.

Potential Mitigations

  • Your attorney can conduct an independent public records search to confirm the absence of significant litigation.
  • It is still advisable to ask current and former franchisees about any disputes they may have had, even if they did not result in litigation.
  • Your attorney should review the dispute resolution clauses in the Franchise Agreement to understand how future conflicts would be handled.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
7
2
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
5
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
4
8
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
6
2
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
5
5
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
10
7
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.