What is considered the 'Date of Loss' for Aira Fitness equipment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business. Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements; (ii) business interruption insurance covering a minimum 12 months loss of income, written on an actual loss sustained basis, including coverage for our monthly fees with us named as a loss payee with respect to those fees; (iii) comprehensive general liability insurance with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate (including product liability and personal and advertising injury) and "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive general liability policy; (iv) automobile liability insurance, including owned, hired and non-owned vehicle coverage with a minimum combined single limit of at least $1,000,000 per claim; (v) workers' compensation and employer's liability insurance covering all of your employees where required by state statute; (vi) professional liability insurance, including abuse and molestation, with a minimum limit of at least $1,000,000 per occurrence; (vii) Commercial Umbrella Liability of at least $10,000,000 per occurrence and $10,000,000 aggregate with "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive umbrella liability policy (viii) cyber liability with minimum limits of at least $25,000 per occurrence; (ix) medical expense coverage of at least $1,000 per accident; (x) crime (employee dishonesty, theft and robbery) with minimum limits of at least $10,000 per occurrence; (xi) employment practices liability with minimum limits of at least $100,000 per occurrence and inclusive of both first and third party coverage; (xii) AIRA Fitness Franchising LLC and any entity with an insurable interest that we designate (the "Additional Insureds") must be an additional insured on all liability policies required by this subparagraph to the extent each has an insurable interest; (xiii) each policy of insurance maintained pursuant to this Agreement mus
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document (FDD) does not explicitly define what constitutes the 'Date of Loss' for insurance purposes regarding equipment. However, it does mandate that franchisees maintain special/causes of loss coverage forms, including mechanical/equipment breakdown coverage, for the full replacement value of the equipment and improvements.
To ensure adequate protection, Aira Fitness franchisees must secure insurance policies that cover potential equipment losses. The FDD specifies minimum coverage requirements, including special/causes of loss coverage forms, business interruption insurance, and comprehensive general liability insurance. These policies must cover the full replacement value of equipment and improvements, as well as potential income loss due to business interruption.
Given the absence of a specific definition for 'Date of Loss' in the FDD, prospective Aira Fitness franchisees should seek clarification from the franchisor regarding the precise conditions and documentation required to make a claim. Understanding the criteria for determining the date of loss is crucial for ensuring that insurance claims are processed smoothly and that the franchisee receives timely compensation for any covered losses. Franchisees should also consult with their insurance providers to ensure their policies align with Aira Fitness's requirements and adequately protect their investment.
It is also important to note that Aira Fitness requires franchisees to modernize the Aira Fitness Business within five years of the Effective Date of the Franchise Agreement and replace all fitness equipment within three years of the Effective Date. This requirement ensures that the equipment remains up-to-date and in good working condition, which can help to minimize the risk of equipment breakdowns and losses.