In Aira Fitness arbitration, can the arbitration proceeding between the Franchisor and Developer be consolidated with any other arbitration proceeding?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Franchisor and Developer agree that arbitration will be conducted on an individual basis only, and not on a joint, collective or class-wide basis, and that an arbitration proceeding between Franchisor and its Affiliates, and Developer and its shareholders, officers, directors, members, managers, employees and agents, may not be consolidated or joined with any other arbitration proceeding between Franchisor and any other person or entity.
Neither party shall commence any arbitration with a third party against the other, or join with any third party in any arbitration involving Franchisor and Developer.
Further, neither Franchisor nor Developer shall attempt to consolidate or otherwise combine in any manner, an arbitration proceeding involving Franchisor and Developer with another arbitration of any kind, nor shall Franchisor or Developer attempt to certify a class or participate as a party in a class action against the other.
- (b) The foregoing notwithstanding, in the event Developer controls, is controlled by, or is in active concert with another developer of Franchisor, or there is a guarantor of some or all of Developer's obligations to Franchisor, then the joinder of those parties to any arbitration between Franchisor and Developer shall be permitted, and in all events, the joinder of an owner, director, officer, member, manager, partner or other representative or agent of Franchisor or Developer shall be permitted.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, arbitration between Aira Fitness and a developer must be conducted on an individual basis only. An arbitration proceeding between Aira Fitness and its affiliates, and the developer and its stakeholders, cannot be consolidated or joined with any other arbitration proceeding between Aira Fitness and any other person or entity. Neither party can start arbitration with a third party against the other, or join with any third party in any arbitration involving Aira Fitness and the developer.
Furthermore, neither Aira Fitness nor the developer can consolidate or combine an arbitration proceeding involving both parties with another arbitration of any kind. They also cannot attempt to certify a class or participate as a party in a class action against the other.
However, if the developer controls, is controlled by, or is in active concert with another developer of Aira Fitness, or if there is a guarantor of some or all of the developer's obligations to Aira Fitness, the joinder of those parties to any arbitration between Aira Fitness and the developer is permitted. Additionally, the joinder of an owner, director, officer, member, manager, partner, or other representative or agent of Aira Fitness or the developer is allowed.