Besides termination, what other actions can Aira Fitness take if I commit an event that allows them to terminate the agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement and not in lieu of such right or any other rights, in the event that you have not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, we may, at our option, enter upon the premises and exercise complete authority with respect to the operation of the Aira Fitness Business until such time as we determine that the default has been cured and that there is compliance with the requirements of this Agreement.
You acknowledge and agree that our agent or other representative we designate may take over, control and operate the Business, that you shall pay us a fee for such management service, not to exceed fifteen percent (15%) of Gross Sales plus all travel expenses, room and board and other expenses actually incurred by such agent or representative so long as it shall be required to enforce compliance with this Agreement.
You further acknowledge that if we temporarily operate the Business on your behalf under this Paragraph 14.D., you will indemnify us and hold us and our agent or representative harmless and respecting any and all claims arising out of our operation of the Business under this Paragraph 14.D..
Nothing herein shall require us to operate the Business when you are in default.
- E.
Other Remedies.
In addition to and without limiting our rights and remedies under this Agreement, any other agreement and applicable law, upon any events upon which we may terminate this Agreement under this Article 14, we may, at our sole option and upon delivery of written notice to you, elect to take any or all of the following actions without terminating this Agreement:
(1) temporarily or permanently reduce the size of the Designated Area, in which even the restrictions upon Paragraph 2.C. will not apply in the geographic area that was removed from the Designated Area;
(2) suspend online enrollment;
(3) suspend our facilitation of the member billing process;
(2) refuse to provide any operation support that this Agreement required or we have elected to provide or suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement; and/or
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness has several options besides terminating the agreement if a franchisee defaults. After a 14-day written notice of default, Aira Fitness can enter the premises and take control of the Aira Fitness business until the default is resolved. During this period, the franchisee will be required to pay Aira Fitness a management service fee, which will not exceed 15% of Gross Sales, in addition to covering all travel expenses, room and board, and other expenses incurred by the agent or representative managing the business. The franchisee is also responsible for indemnifying Aira Fitness against any claims arising from their operation of the business during this time. However, Aira Fitness is not obligated to operate the business on the franchisee's behalf during the default.
In addition to taking over operations, Aira Fitness can also choose to take other actions without terminating the agreement. These actions include temporarily or permanently reducing the size of the designated area, suspending online enrollment, and suspending the facilitation of the member billing process. Aira Fitness can also refuse to provide operational support or suspend any other services they or their affiliates provide under the agreement. These measures allow Aira Fitness to address the default while still allowing the franchisee to potentially rectify the situation and continue operating the business in some capacity.
These alternative actions provide Aira Fitness with flexibility in managing franchisee defaults, allowing them to protect their brand and system without immediately resorting to termination. For a prospective franchisee, this means that a default does not automatically lead to termination, and there may be opportunities to work with Aira Fitness to resolve the issue and continue operating the business. However, it is important to understand the conditions under which these actions may be taken and the associated costs, such as the management service fee and indemnification responsibilities.