Can an arbitrator certify a class action related to an Aira Fitness franchise dispute?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ration under the authority of the Federal Arbitration Act and must be arbitrated in accordance with the then-current rules and procedures and under the auspices of the American Arbitration Association ("AAA"). 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;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, disputes between the franchisee and Aira Fitness must be submitted to binding arbitration under the Federal Arbitration Act, following the American Arbitration Association (AAA) rules. The agreement specifies that any arbitration must be conducted on an individual basis, explicitly prohibiting participation in consolidated, common, or class actions. Franchisees and their owners waive any right to proceed on such a basis. Multiparty arbitration is specifically excluded, and the arbitrator lacks the authority to proceed with any claim as a class action or consolidate claims with third parties.
This means that an Aira Fitness franchisee is restricted from joining or initiating a class action against the franchisor. This clause ensures that disputes are handled individually, potentially reducing Aira Fitness's exposure to large-scale litigation. However, if a court or arbitrator determines that the exclusion of multiparty arbitration, including class 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's authority is limited, as they cannot stay the effectiveness of any pending termination of the Franchise Agreement, assess punitive or exemplary damages, certify a class or consolidate an action, or make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Aira Fitness. The arbitrator must have at least five years of experience in franchising or franchise law, and their decisions are final and binding, subject to the specified limitations. This arrangement is intended to provide a structured, yet limited, avenue for dispute resolution, protecting Aira Fitness from class action lawsuits while ensuring franchisees have access to arbitration.