Where will arbitration take place for Aira Fitness disputes according to the revised Multi-Unit Development Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| This ac | ddendum to the Multi-Unit Developm | ent Agreement is by and between Aira Fitness Franchising, LLC and (Developer) to amend said Agreement as follows: |
|---|---|---|
| 1. | elopment Agreement on Governing Law/Consent to Jurisdiction is owing language to the original language that appears therein: | |
| franchise agreement restricti | hode Island Franchise Investment Act provides that 'A provision in a ng jurisdiction or venue to a forum outside this state or requiring other state is void with respect to a claim otherwise enforceable under | |
| 2. | elopment Agreement on Agreement to Arbitrate is amended by the to the original language that appears therein: | |
| Investment Act, that any pro outside of Rhode Island is vo | with respect to a claim enforceable under the Rhode Island Franchise vision in a franchise agreement which restricts jurisdiction or venue id. Accordingly, arbitration of a claim enforceable under the Act will and unless the franchisee agrees otherwise." |
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
The 2025 Aira Fitness FDD includes addenda to the Multi-Unit Development Agreement for several states that address governing law, jurisdiction, and dispute resolution. For instance, the Rhode Island addendum states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island is void concerning claims enforceable under the Rhode Island Franchise Investment Act. Therefore, arbitration of claims enforceable under this act will occur in Rhode Island unless the franchisee agrees otherwise. Similarly, the New York addendum states that the choice of law in the agreement does not waive any rights conferred to the franchisee under Article 33 of the General Business Law of New York.
The Illinois addendum states that any provision in a franchise agreement designating jurisdiction and venue in a forum outside of Illinois may not be enforceable under the Illinois Franchise Disclosure Act. These addenda indicate that Aira Fitness is willing to modify the standard Multi-Unit Development Agreement to comply with state franchise laws, particularly regarding dispute resolution and choice of law.
For a prospective Aira Fitness franchisee, these addenda highlight the importance of understanding the specific franchise laws in their state and how they may affect the enforceability of certain provisions in the franchise agreement, especially those related to arbitration, jurisdiction, and governing law. It is essential to carefully review the addendum (if any) for their state and seek legal counsel to fully understand their rights and obligations.