Is a change in the general partner of a franchisee partnership considered a transfer of the Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Specifically, but without limiting the generality of the foregoing, the following events constitute a transfer and you must comply with the right of first refusal, consent, transfer fee, and other transfer conditions in this Section 12:
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- Any change or series of changes in the percentage of the franchisee entity owned, directly or indirectly, by the Owner (including any addition or deletion of any person or entity who qualifies as an Owner);
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- Any change in the general partner of a franchisee that is a general, limited or other partnership
entity; or
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a change in the general partner of a franchisee that is a general, limited, or other partnership entity is considered a transfer. This means that if the franchisee is a partnership and there is any change in the general partner, Aira Fitness considers it a transfer of the franchise. As a result, the franchisee must comply with specific requirements.
These requirements include offering Aira Fitness the right of first refusal to acquire the franchise agreement. If Aira Fitness declines, the franchisee must obtain Aira Fitness's written consent for the transfer. A transfer fee must be paid, and the conditions outlined in Section 12.C of the franchise agreement must be met.
For a prospective Aira Fitness franchisee, this means that if they operate the franchise through a partnership, any change in the general partner will trigger the transfer process. This process involves potential fees, consent requirements, and adherence to specific conditions, adding complexity to the partnership structure. The transfer fee is $5,000 if the transferee is an existing Aira Fitness franchisee; otherwise, the fee is equal to the then-current initial franchise fee.