Where will the arbitration hearing take place for disputes related to the Aira Fitness franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for controversies, disputes or claims related to or based on Developer's use of the Marks or Confidential Information, Developer's compliance with its noncompetition obligations, all controversies, disputes or claims between Franchisor, its affiliates, and their respective owners, officers, directors, agents, employees and attorneys, and Developer (its affiliates and owners and guarantors, if applicable), arising out of or related to this Agreement or any other agreement between the parties; the parties' rights and obligations under this Agreement; Franchisor's relationship with Developer or the obligations by and between the parties; or the validity of this Agreement or any other agreement between Franchisor and Developer or any provision of such agreements, will be submitted to binding Arbitration administered by the American Arbitration Association ("AAA") in accordance with the AAA's then-current Commercial Arbitration Rules.
The arbitration hearing shall take place in McHenry County, Illinois, before a single arbitrator.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, arbitration hearings related to the franchise agreement will take place in McHenry County, Illinois. This applies to controversies, disputes, or claims between the franchisor, its affiliates, and their respective owners, officers, directors, agents, employees, and attorneys, and the developer (its affiliates and owners and guarantors, if applicable). These disputes must arise out of or relate to the Franchise Agreement or any other agreement between the parties. They also include disputes about the parties' rights and obligations under the agreement, the franchisor's relationship with the developer, or the validity of the agreement.
This means that if a franchisee has a dispute with Aira Fitness that isn't resolved through other means, the franchisee may be required to travel to McHenry County, Illinois, to attend an arbitration hearing. This could involve significant travel expenses and time away from their business.
It is important to note that disputes related to the developer's use of the Marks or Confidential Information, or the developer's compliance with its noncompetition obligations, are excluded from this arbitration clause. The arbitration will be administered by the American Arbitration Association (AAA) in accordance with the AAA's then-current Commercial Arbitration Rules, and will be heard before a single arbitrator.