What condition must be met before the assignment of telephone rights from the franchisee to Aira Fitness becomes effective?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of expiration or termination of the Franchise Agreement, and in order to secure continuity and stability of the operation of the Aira Fitness Business, Franchisee hereby sells, assigns, transfers and conveys to the Aira Fitness all of its rights, title and interest in and to all telephone numbers, telephone listings and telephone directory advertisements used in connection with the operation of the Aira Fitness Business; provided, however, such Assignment will not be effective unless and until the Franchise Agreement has expired or is terminated in accordance with the provisions thereof and Aira Fitness has delivered to Franchisee written notice of acceptance of the assignment. In the event of such assignment, Aira Fitness assumes no liability for monies owed or other liabilities relating to the telephone numbers, telephone listings, and telephone directory advertisements that have accrued prior to the effective date of the assignment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, in the event of the expiration or termination of the Franchise Agreement, the franchisee assigns all rights to telephone numbers, listings, and advertisements to Aira Fitness. However, this assignment only becomes effective once two conditions are met. First, the Franchise Agreement must have expired or been terminated according to its provisions. Second, Aira Fitness must deliver written notice to the franchisee, indicating their acceptance of the assignment.
This means that even after the franchise agreement ends, the franchisee retains control over these assets until Aira Fitness formally accepts the assignment in writing. This ensures that the franchisee can continue using these resources until Aira Fitness is ready to take over.
Furthermore, Aira Fitness assumes no liability for any outstanding debts or liabilities related to the telephone numbers, listings, and advertisements that accrued before the assignment's effective date. This protects Aira Fitness from being responsible for the franchisee's prior financial obligations related to these services.