What condition must be met before an assignment of the lease to Aira Fitness becomes effective?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignment. Tenant has the right to assign all of its right, title and interest in the Lease to Aira Fitness or its successor, or either company's affiliates, at any time during the term of the Lease, including any extensions or renewals, without first obtaining Landlord's consent. No assignment will be effective, however, until Aira Fitness or its successor or designated affiliate gives Landlord written notice of its acceptance of the assignment. If Aira Fitness elects to assume the lease under this paragraph or unilaterally assumes the lease as provided for in subparagraphs 3(c) or 4(a), Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations, including amounts owed to Landlord, prior to the date of assignment and assumption, and (ii) Aira Fitness will have the right to sublease the Premises to another AIRA FITNESS franchisee, without further need for Landlord approval, provided the franchisee agrees to operate the Aira Fitness Business as an Aira Fitness Business pursuant to a franchise agreement with Aira Fitness. Aira Fitness will be responsible for the lease obligations incurred after the effective date of the assignment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a tenant has the right to assign their lease to Aira Fitness or its successors or affiliates without the landlord's prior consent. However, such an assignment is not effective until Aira Fitness or its successor or designated affiliate provides the landlord with written notice of their acceptance of the assignment.
If Aira Fitness assumes the lease, the original tenant remains liable for all responsibilities and obligations, including any amounts owed to the landlord, up to the date of the assignment. After the assignment date, Aira Fitness becomes responsible for the lease obligations. Furthermore, Aira Fitness has the right to sublease the premises to another Aira Fitness franchisee without needing further approval from the landlord, provided the new franchisee agrees to operate the business under a franchise agreement with Aira Fitness.
This clause protects Aira Fitness by ensuring they have control over the location of their franchises, even in situations where the original franchisee transfers the business. It also provides clarity to the landlord regarding who is responsible for the lease at different points in time. For a prospective franchisee, this means understanding that Aira Fitness has significant control over the lease and location, which could be beneficial or restrictive depending on the circumstances of a transfer or sublease.