What are the consequences of an Aira Fitness franchisee voluntarily abandoning the agreement or authorized location?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event any of the following defaults occurs, you will have no right or opportunity to cure the default and this Agreement will terminate effective immediately on our issuance of written notice of termination: (i) you have failed to identify a mutually acceptable site for the operation of the Aira Fitness Business or to open the Aira Fitness Business for business within the time period provided by this Agreement; (ii) you or any Owner has made any material misrepresentation or omission in your franchise application or any other report to us; (iii) your voluntary abandonment of this Agreement or the Authorized Location, (iv) the loss of your lease, or the failure to timely cure a default under the lease, (v) the loss of your right of possession or failure to reopen or relocate under Section 5.G.; (vi) the closing of the Aira Fitness Business by any state or local authorities for health or public safety reasons; (vii) any unauthorized use of the Confidential Information; (viii) voluntary or involuntary bankruptcy by or against you or any Owner or guarantor, insolvency, making an assignment for the benefit of creditors or any similar voluntary or involuntary arrangement for the disposition of assets for the benefit of creditors; (ix) conviction of you, any Owners, or guarantors of (or pleading no contest to) any felony or misdemeanor that brings or tends to bring any of the Marks into disrepute or impairs or tends to impair your reputation or the goodwill of the Marks or the Aira Fitness Business, (x) you, any Owner, guarantor or an affiliate of any of you are listed by the United States or United Nations as being a terrorist, financier of terrorism or otherwise restricted from doing business in or with the United States; (xi) intentionally underreport membership sales or Gross Sales, falsify financial data, or otherwise commit an act of fraud with respect to your acquisition of this franchise or your rights or obligations under this Agreement, or any understatement or 2% variance on a subsequent audit within a two- year period under Section 10.C., (xii) any unauthorized transfer or assignment in violation of Section 12; (xiii) your failure to use the approved payment processor, (xiv) you failed to meet the Minimum Membership Requirement for six (6) consecutive months, (xv) you failed to meet the Minimum Monthly Gross Sales Requirement for six (6) consecutive months, or *(xv)*any default by you that is the second same or similar default within any 12 month consecutive period or the third default of any type within any 24-month consecutive period.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee voluntarily abandons the Franchise Agreement or the authorized location, Aira Fitness has the right to terminate the agreement immediately without providing an opportunity to cure the default. This means the franchisee loses all rights granted under the agreement at once.
Abandoning the agreement or authorized location is listed as one of several defaults that trigger immediate termination. Other defaults include failing to identify a mutually acceptable site, making misrepresentations in the franchise application, losing the lease, unauthorized use of confidential information, bankruptcy, conviction of a felony, underreporting sales, unauthorized transfer of the agreement, failure to use the approved payment processor, and failing to meet minimum membership or gross sales requirements.
This immediate termination has significant implications for the franchisee. They will be required to cease all use of Aira Fitness's trademarks and proprietary materials, assign telephone numbers to Aira Fitness, and remove all Aira Fitness signage from the location. Furthermore, the franchisee may be responsible for reimbursing members for prepaid services not rendered.
Additionally, for two years after termination, the franchisee is restricted from engaging in any competitive exercise facility within a 10-mile radius of the former Aira Fitness location or any other Aira Fitness Business. This non-compete clause is designed to protect Aira Fitness's market and confidential information. The franchisee acknowledges that these restrictions are reasonable and necessary to protect Aira Fitness and its system.