What are the consequences if an Aira Fitness business is closed by authorities for health or public safety reasons?
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 location is closed by state or local authorities for health or public safety reasons, Aira Fitness has the right to immediately terminate the Franchise Agreement without any opportunity for the franchisee to correct the issue. This is a significant risk for franchisees, as any closure, even if temporary, could result in the permanent loss of their franchise.
This immediate termination clause underscores the importance of maintaining high standards of health and safety at the Aira Fitness location. Franchisees must ensure strict compliance with all applicable regulations to avoid potential closure and subsequent termination of the agreement. This requirement is stricter than many franchise agreements, which often allow a 'cure period' for violations before termination.
In addition to the immediate termination of the agreement, the franchisee would also be subject to post-term obligations. These include ceasing all use of Aira Fitness's trademarks and proprietary materials, assigning telephone numbers, and removing all signage and materials that identify the location as an Aira Fitness business. The franchisee is also responsible for reimbursing members for all pre-paid services not rendered. These post-term obligations are standard in franchise agreements to protect the brand and ensure a smooth transition after termination.