What is a condition of Aira Fitness's consent to a proposed franchise transfer?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
Transferee Qualifications.
The transferee must meet all of our then-current requirements for the franchise we are offering at the time of the proposed transfer.
Payment of Amounts Owed.
All amounts owed by you to us or any of our affiliates, your suppliers or any landlord for the Aira Fitness Business premises and Authorized Location, or upon which we or any of our affiliates have any contingent liability must be paid in full.
Reports.
You must have provided all required reports to us in accordance with Section 10.
Modernization.
You must have complied with the provisions of Section 5.F.
Guarantee.
In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
Consent to Transfer; General Release.
You, each Owner and each guarantor must execute all transfer documents that we require and in the form we designate, which documents will include a general release
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness places several conditions on its consent to a proposed franchise transfer. The transferee must meet all of Aira Fitness's then-current requirements for new franchisees. This ensures that the new owner is qualified to maintain the standards and reputation of the Aira Fitness brand.
Additionally, all outstanding financial obligations that the current franchisee owes to Aira Fitness, its affiliates, suppliers, or the landlord must be paid in full before the transfer can be approved. This protects Aira Fitness and related parties from potential financial losses associated with the transfer. The franchisee also needs to have provided all required reports to Aira Fitness in accordance with Section 10 of the franchise agreement and complied with the modernization provisions outlined in Section 5.F.
Furthermore, if the transfer involves an installment sale where the franchisee or an owner retains a security interest, they and any guarantors must continue to guarantee performance under the Franchise Agreement until the final close of the sale or the termination of the interest. Finally, the franchisee, each owner, and each guarantor must execute all required transfer documents, including a general release of claims, in the form designated by Aira Fitness. These conditions collectively aim to ensure a smooth transition, protect the brand, and maintain financial stability during and after the transfer process.