What is the consequence if the Franchisor's Affiliate deems itself or any of its Pod to be insecure due to an adverse material change in the Aira Fitness franchisee's financial condition?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
apply for or consent to the application of any bankruptcy, reorganization in bankruptcy, arrangement, readjustment of debt, insolvency, dissolution, moratorium or other similar law of any jurisdiction, or authorize such application or consent; or proceedings to such end shall be instituted against it without such authorization, application or consent and such proceeding instituted against it shall continue undismissed for a period of 60 days; or
- (g) shall suffer an adverse material change in its financial condition from the date hereof, and as a result thereof Franchisor's Affiliate deems itself or any of its Equipment to be insecure; or
- (h) shall be in default under any other agreement at any time executed with Franchisor's Affiliate.
- 12. Remedies. Upon the occurrence of any Event of Default and at any time thereafter, Franchisor's Affiliate may, with or without cancelling this Lease, in its sole discretion, do any one or more of the following:
- (a) Upon written notice to Franchisee cancel this Lease and any or all Lease Schedules executed pursuant thereto;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if the Franchisor's Affiliate deems itself or any of its Pod to be insecure due to an adverse material change in the franchisee's financial condition, several remedies are available. The Franchisor's Affiliate has the option to cancel the lease with written notice to the franchisee, including any or all lease schedules.
Additionally, the Franchisor's Affiliate, in its sole discretion, can choose not to repossess the Pod but still retain ownership. In this case, they may dispose of the Pod through sale or other means, with all decisions made at their discretion and for their own benefit.
Furthermore, the Franchisor's Affiliate can declare all sums due for the entire lease term, including any renewal or purchase options the franchisee has agreed to pay, immediately due and payable. These remedies are available upon the occurrence of such an event and at any time thereafter, providing the Franchisor's Affiliate with considerable flexibility in addressing the perceived financial insecurity.