What conditions must an Aira Fitness franchisee meet to exercise the option to purchase the Pod?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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. We and you will each pay one-half of the appraiser's fees and expenses. Our interest in the assets of the Aira Fitness Business that are owned by you or your
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the document does not specify any conditions that an Aira Fitness franchisee must meet to exercise an option to purchase the Pod. The FDD does mention that if a franchisee will be operating their Aira Fitness Business from a Pod, they must purchase or lease the Pod (“Pod Package”) from a supplier approved by Aira Fitness, which may include Aira Fitness, its affiliate, or a third party.
However, the FDD does outline the conditions under which Aira Fitness has the option to purchase assets from the franchisee upon termination or expiration of the franchise agreement. Aira Fitness must provide written notice of its preliminary intent to exercise its purchase rights within thirty (30) days after the termination or expiration date. A qualified appraiser, agreed upon by both parties, will determine the purchase price of the assets, which may include equipment, fixtures, and leasehold improvements. If an agreement on the appraiser cannot be reached, each party will appoint their own appraiser, and those two appraisers will select a neutral third appraiser.
Within forty-five (45) days of receiving the appraisal report, Aira Fitness will identify the assets it intends to purchase at the appraised price. Both parties will then proceed to complete the purchase, executing customary purchase and sale documents. The costs for the appraiser will be split equally between Aira Fitness and the franchisee. Upon Aira Fitness's exercise of the purchase option and payment tender, the franchisee must sell and deliver the purchased assets free and clear of all encumbrances.