Does Aira Fitness allow arbitration proceedings to be conducted on a joint, collective, or class-wide basis?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Any arbitration must be on an individual basis, and not as part of a consolidated, common, or class action, and you and/or your Owners waive any right to proceed on a consolidated, common, or class basis. Multiparty arbitration is specifically excluded, and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or other proceeding involving third parties. In the event a court or arbitrator determines that this exclusion of multiparty arbitration (including class arbitration) is unenforceable, then this entire commitment to arbitrate will be null and void and the parties must submit all claims to the jurisdiction of the courts. Arbitration shall take place in the Chicago, Illinois metropolitan area. The arbitrators must follow the law and not disregard the terms of this Agreement. Any arbitrator must have at least five years' experience in franchising or in franchise law.
Any unappealed decision of the arbitrator(s) will be final and binding on all parties to the dispute; however, the arbitrator(s) shall have no authority to: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; (iii) certify a class or consolidate an action, or (iv) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set. A judgment may be entered upon the arbitration award by any court of competent jurisdiction.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, any arbitration between the franchisee and Aira Fitness must be conducted on an individual basis. The agreement explicitly states that arbitration cannot be part of a consolidated, common, or class action. Franchisees and their owners waive any right to proceed in such a manner.
Multiparty arbitration is specifically excluded, meaning that claims cannot be joined or consolidated with claims involving third parties. If a court or arbitrator determines that this exclusion of multiparty arbitration is unenforceable, the entire arbitration agreement becomes null and void, and all claims must be submitted to the jurisdiction of the courts.
The arbitrator does not have the authority to certify a class or consolidate an action. This clause ensures that disputes are handled individually, preventing franchisees from joining together to pursue collective action against Aira Fitness. This is a common practice in franchising agreements to limit the franchisor's exposure to large-scale legal actions.