What is the condition for selecting a qualified appraiser to determine the purchase price of the Aira Fitness Business assets?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e your rights in management software and data processing accounts used in connection with the operation of the Aira Fitness Business; and/or (vi) assume all social media accounts associated with the Aira Fitness Business.
Upon termination or expiration of this Agreement, we also will have the option, to purchase any or all of the assets used in connection with the operation of the Aira Fitness Business including, without limitation, equipment, fixtures, signage, furnishings, supplies and leasehold improvements. The purchase price for the assets will be determined by a qualified appraiser selected with the consent of both parties, provided we give you written notice of our preliminary intent to exercise our purchase rights under this Section 15.B. within thirty (30) days after the date of the expiration or termination of this Agreement. If the parties cannot agree upon the selection of an appraiser(s), each party will appoint their own appraiser and the two appraisers will select a neutral appraiser, who will independently perform the appraiser. Within forty-five (45) days after our receipt of the appraisal report, we or our designated purchaser will identify the assets, if any, that we intend to purchase at the price designated for those assets in the appraisal report. We or our designated purchaser and you will then proceed to complete and close the purchase of the identified assets, and to prepare and execute purchase and sale documents customary for the assets being purchased, in a commercially reasonable time and manner.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the purchase price for assets upon termination or expiration of the agreement will be determined by a qualified appraiser. Both Aira Fitness and the franchisee must consent to the selection of the appraiser. This condition applies when Aira Fitness provides written notice of their intent to exercise their purchase rights within 30 days after the agreement's expiration or termination.
If Aira Fitness and the franchisee cannot agree on an appraiser, each party will appoint their own appraiser. The two appraisers will then select a neutral appraiser to independently perform the appraisal. This ensures that an unbiased valuation is conducted, even if the initial appraiser selection process is contentious.
In the event of a transfer resulting from a change in control, insolvency, or bankruptcy filing, the purchase price for Aira Fitness's purchase of assets will also be established by a qualified appraiser selected by both parties. This valuation will follow the price determination formula established in Section 15.B of the FDD, which pertains to asset purchases upon expiration. If an agreement on the appraiser cannot be reached, a Judge of the United States District Court for the district where the authorized location is situated will appoint one upon petition by either party.