What is the consequence for an attempted assignment of interest in the Aira Fitness agreement that violates its provisions?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void and will provide us with the right to elect either to default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfer fee provided for in Section 12.C.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, an attempted transfer of interest in the franchise agreement without prior written consent or not in compliance with the agreement's terms is considered void. This gives Aira Fitness the option to either terminate the agreement or to collect from the franchisee and guarantors a transfer fee equal to two times the standard transfer fee outlined in Section 12.C of the agreement.
This provision is designed to ensure that Aira Fitness maintains control over who becomes a franchisee and that all transfers meet their standards. The brand wants to ensure that any new franchisee is qualified and financially stable, and that all outstanding obligations are met before a transfer occurs.
For a prospective Aira Fitness franchisee, this means that any attempt to sell or transfer the franchise without Aira Fitness's approval can result in significant financial penalties or even termination of the franchise agreement. It is crucial to follow the proper procedures and obtain written consent from Aira Fitness before attempting any transfer to avoid these consequences.