After assignment of the Aira Fitness lease, to whom should the franchisee pay rent and other sums due?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If Aira Fitness elects to assume the lease under this paragraph or unilaterally assumes the lease as provided for in subparagraphs 3(c) or 4(a), Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations, including amounts owed to Landlord, prior to the date of assignment and assumption, and (ii) Aira Fitness will have the right to sublease the Premises to another AIRA FITNESS franchisee, without further need for Landlord approval, provided the franchisee agrees to operate the Aira Fitness Business as an Aira Fitness Business pursuant to a franchise agreement with Aira Fitness. Aira Fitness will be responsible for the lease obligations incurred after the effective date of the assignment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document (FDD) outlines the lease agreement and assignment terms. According to the FDD, Aira Fitness has the right to assume the lease. If Aira Fitness elects to assume the lease, the franchisee remains liable for responsibilities and obligations, including amounts owed to the landlord, prior to the date of assignment and assumption. After the effective date of the assignment, Aira Fitness becomes responsible for the lease obligations incurred.
This means that initially, the franchisee is responsible for paying rent and other sums due to the landlord as per the lease agreement. However, if Aira Fitness exercises its right to assume the lease, the responsibility for payments shifts to Aira Fitness for obligations incurred after the assignment date. The franchisee should ensure clear documentation of the assignment date to avoid disputes about payment responsibilities.
It's important for a prospective Aira Fitness franchisee to understand the conditions under which Aira Fitness might assume the lease and how this affects their financial obligations. The franchisee should maintain open communication with both the landlord and Aira Fitness to ensure a smooth transition of lease responsibilities if the assignment occurs. This includes obtaining written confirmation of the assignment date and clarifying any outstanding balances or obligations at the time of the transfer.