Can Aira Fitness's Affiliate assign or transfer the lease without notifying the franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignment: Franchisor's Affiliate may assign some or all of Franchisor's Affiliate 's rights under this Agreement to a third party. So long as any of Franchisee's payment obligations under this Agreement remain outstanding, Franchisee shall not assign this Agreement or sell or transfer the Equipment without Franchisor's Affiliate 's prior written consent.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness's Affiliate has the right to assign its rights under the agreement to a third party. However, the franchisee cannot assign the agreement or sell/transfer equipment without the Affiliate's prior written consent, as long as the franchisee has outstanding payment obligations. This means that while Aira Fitness's Affiliate can assign its rights, the franchisee's ability to assign or transfer is restricted, requiring written consent from Aira Fitness's Affiliate under certain conditions. This is designed to protect Aira Fitness's interests and ensure financial obligations are met.
This provision is fairly standard in franchising, as franchisors typically want to maintain control over who operates a franchise and ensure financial stability. The requirement for written consent protects Aira Fitness's brand and operational standards. For a prospective franchisee, this means they cannot freely transfer their franchise or sell equipment without Aira Fitness's Affiliate's approval if they still owe money.
It is important for a potential Aira Fitness franchisee to understand these restrictions on assignment and transfer, especially if they anticipate needing to sell the franchise or transfer equipment at any point. They should carefully review the terms of the franchise agreement and any related documents to fully understand the conditions under which assignment or transfer is permitted or restricted. This includes understanding what constitutes "outstanding payment obligations" and the process for obtaining written consent from Aira Fitness's Affiliate.