What constitutes abandonment of the Aira Fitness business that would trigger an Event of Default?

According to Aira Fitness's 2025 Franchise Disclosure Document, an Event of Default can be triggered if the franchisee abandons, surrenders, or transfers control of the operation of the Aira Fitness business without the prior written consent of the Secured Party. Additionally, immediate termination without opportunity to cure can occur due to the franchisee's voluntary abandonment of the Franchise Agreement or the Authorized Location.

Abandonment, in the context of franchise agreements, generally refers to the franchisee ceasing operations at the authorized location without the franchisor's approval or any intention of resuming business. This can have significant implications for the franchisee, including the immediate termination of the franchise agreement and potential loss of investment. It is crucial for Aira Fitness franchisees to understand the specific conditions under which abandonment is deemed to have occurred, as outlined in the franchise agreement.

Furthermore, franchisees should be aware of the procedures for obtaining the franchisor's consent for any transfer of control or changes in the operation of the business. Failure to adhere to these procedures could result in the franchisor declaring an Event of Default and exercising its rights under the agreement. Franchisees should maintain open communication with Aira Fitness and seek written approval for any significant changes to the business operations to avoid potential disputes or termination of the franchise agreement.