Besides the Franchise Agreement, is the Aira Fitness franchisee required to execute a separate Security Agreement?

According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees are required to sign a Security Agreement in addition to the Franchise Agreement. Specifically, Attachment H of the franchise agreement is a security agreement. This implies that Aira Fitness takes a security interest in some or all of the franchisee's assets to protect its interests.

In practical terms, this means that Aira Fitness has a legal claim on certain assets of the franchisee's business. This claim could be enacted if the franchisee fails to meet certain obligations outlined in the Franchise Agreement, such as payment of royalties or adherence to operational standards. The Security Agreement gives Aira Fitness a stronger position in recovering debts or assets in case of a default by the franchisee.

Prospective Aira Fitness franchisees should carefully review Attachment H, the Security Agreement, to understand exactly which assets are subject to the security interest, the conditions under which Aira Fitness can claim those assets, and the implications for the franchisee's business operations and financing options. It is advisable to seek legal counsel to fully understand the terms and potential risks associated with granting a security interest to the franchisor.