Can an arbitrator stay the termination of the Aira Fitness franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, an arbitrator does not have the authority to stay the effectiveness of any pending termination of the Franchise Agreement. This means that if Aira Fitness decides to terminate the agreement, the arbitrator cannot prevent the termination from taking effect while the dispute is being resolved through arbitration.
This limitation on the arbitrator's power is significant for a prospective franchisee. Even if a franchisee believes that Aira Fitness is wrongfully terminating the agreement, the franchisee could still lose their franchise before the arbitration process is complete. This could result in a loss of income and business operations during the arbitration period.
Furthermore, the arbitrator is restricted from assessing punitive or exemplary damages, certifying a class or consolidating an action, or making any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance set by Aira Fitness. This further limits the remedies an Aira Fitness franchisee can seek through arbitration.