What are the consequences of repeated defaults under the Aira Fitness agreement within a specified timeframe?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
*(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 the 2025 Aira Fitness Franchise Disclosure Document, repeated defaults within a certain timeframe can lead to immediate termination of the franchise agreement without an opportunity to correct the issue. Specifically, if a franchisee commits the same or a similar default for a second time within a 12-month period, or commits any type of default for a third time within a 24-month period, Aira Fitness has the right to terminate the agreement immediately upon written notice.
This provision highlights the importance of maintaining consistent compliance with the franchise agreement. For a prospective Aira Fitness franchisee, this means carefully reviewing the agreement to understand what constitutes a default and implementing systems to prevent repeated violations. The franchisee needs to be aware that even if a default seems minor, repeated occurrences can have severe consequences.
This type of clause is not uncommon in franchise agreements, as franchisors need to protect their brand and ensure consistent standards across all locations. However, the specific timeframes and the lack of a cure period for repeated offenses make it crucial for Aira Fitness franchisees to prioritize operational consistency and adherence to the agreement's terms to avoid the risk of immediate termination.