What is considered the 'Default Date' for the purposes of calculating damages owed to Aira Fitness?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ide or suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement; and/or - (3) remove your Aira Fitness Business from any website we manage.
- F. Liquidated Damages. In the event of any default by you that results in a premature termination of this Agreement (regardless of which party actually terminates this Agreement), without prejudice to any other remedy we may have under the terms of this Agreement or otherwise, you must pay us, as liquidated damages and not as a penalty, an amount equal to thirty-six (36) times the Royalty owed to us over the past twelve (12) month period immediately preceding the date of termination (or if you have been in business less than twelve (12) months, then during the entire period you have been in business).
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the 'default date' that triggers the calculation of liquidated damages is the date of termination of the Franchise Agreement. If a franchisee defaults and the agreement is prematurely terminated, Aira Fitness is entitled to liquidated damages.
The liquidated damages are calculated as thirty-six times the Royalty owed to Aira Fitness over the twelve-month period immediately preceding the termination date. If the franchisee has been in business for less than twelve months, the calculation is based on the entire period the franchisee has been in business.
This amount is considered a reasonable estimate of the damages Aira Fitness will incur due to the default and premature termination. This clause essentially means that Aira Fitness aims to recoup a portion of its anticipated future royalties in the event a franchisee fails to uphold their agreement and the franchise is terminated early.