For Aira Fitness, is a bequest of the business considered a transfer?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We have entered into this Agreement with specific reliance upon your financial qualifications, experience, skills and managerial qualifications as being essential to the satisfactory operation of the Aira Fitness Business. Consequently, your interest in this Agreement or in the Aira Fitness Business, or all or substantially all of the assets of the Aira Fitness Business, or any Owner's interest in a franchisee that is a partnership or entity may be transferred or assigned to or assumed by any other person or entity (the "transferee"), in whole or in part, unless you have first tendered to us the right of first refusal to acquire this Agreement in accordance with Section 12.E , and if we do not exercise such right, unless our prior written consent is obtained, the transfer fee provided for in Section 12.C is paid, if applicable, and the transfer conditions described in Section 12.C are satisfied. Any sale (including installment sale), lease, pledge, management agreement, contract for deed, option agreement, assignment, bequest, gift or otherwise, or any arrangement pursuant to which you turn over all or part of the daily operation of the business to a person or entity who shares in the losses or profits of the business in a manner other than as an employee will be considered a transfer for purposes of this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a bequest of the business is considered a transfer. The FDD specifies that any transfer or assignment of interest in the Franchise Agreement or the Aira Fitness Business requires the franchisor's consent. This includes, but is not limited to, a bequest.
For a prospective franchisee, this means that if they plan to pass their Aira Fitness franchise to an heir through a will, it will be treated as a transfer under the franchise agreement. The heir will need to meet certain conditions, including obtaining Aira Fitness's approval, potentially paying a transfer fee, and fulfilling other transfer requirements outlined in Section 12 of the agreement.
Specifically, in the event of death, the heir or successor-in-interest has 180 days to apply for consent, comply with training requirements, pay the transfer fee (if applicable), and satisfy all other transfer conditions. However, if the transferee is a spouse or child, the transfer fee is waived, and Aira Fitness does not have the right of first refusal. During the transition, the Aira Fitness business must continue to operate according to the terms of the Franchise Agreement.