What are the consequences if the Aira Fitness business is closed by authorities for health or public safety reasons?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Immediate Termination With No Opportunity to Cure.
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 the Aira Fitness business is closed by state or local authorities for health or public safety reasons, the franchise agreement will be terminated immediately without any opportunity to remedy the situation. This means Aira Fitness has the right to terminate the agreement as soon as they provide written notice.
This immediate termination clause has significant implications for a franchisee. Unlike some other defaults where a franchisee might have a chance to correct the issue, a closure by authorities triggers an immediate and irreversible end to the agreement. The franchisee loses all rights to operate under the Aira Fitness brand and must cease all use of Aira Fitness's trademarks and proprietary materials.
Furthermore, upon termination, the franchisee is subject to post-term obligations, including a non-compete clause. This restricts the franchisee from engaging in or being associated with any competing exercise facility for a period of two years after termination. The franchisee is also responsible for reimbursing members for all pre-paid services that were not rendered due to the closure.
In addition to the immediate termination and post-term obligations, Aira Fitness has the right to assume the tenant's interest in the lease. The franchisee is responsible for removing all Aira Fitness signage and making necessary modifications to differentiate the premises from Aira Fitness businesses. If the franchisee fails to do so within thirty days, Aira Fitness has the right to enter the location and remove the signage at the franchisee's expense.