What constitutes a default under the Aira Fitness Development Agreement if the developer fails to comply with any term or condition of the agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3 If you (i) fail to meet any of the deadlines set forth in the Development Schedule; (ii) fail to comply with any other term and condition of this Agreement; (iii) make or attempt to make a transfer, sale or assignment of this Agreement in violation of this Agreement; or (iv) you or other entity owned by the Owners are in default under any individual Franchise Agreement with us, or of any other agreement to which we are parties; any such event shall constitute a default under this Agreement.
Upon any such default, we, in our sole discretion, may do any one or more of the following:
(a) Terminate this Agreement and all rights granted hereunder to you without affording you any opportunity to cure the default effective immediately upon delivery to you of a written notice from us;
(b) Reduce the number of Aira Fitness Centers which you have the right to establish and open pursuant to this Agreement; or
(c) Exercise any other rights and remedies which we may have under applicable law.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a developer will be in default of the Development Agreement if they fail to meet deadlines in the Development Schedule, fail to comply with any other term or condition of the agreement, attempt to transfer, sell, or assign the agreement in violation of its terms, or if the developer or any entity owned by the Owners are in default under any individual Franchise Agreement with Aira Fitness or any other agreement to which Aira Fitness is a party.
Upon such a default, Aira Fitness has the sole discretion to take one or more of the following actions: terminate the agreement and all rights granted to the developer without any opportunity to cure the default, effective immediately upon written notice; reduce the number of Aira Fitness Centers the developer has the right to establish and open; or exercise any other rights and remedies available under applicable law.
These terms are fairly standard in franchise development agreements, as franchisors need to ensure developers adhere to the agreed-upon schedule and terms to maintain brand consistency and growth. The potential consequences of default, such as immediate termination or reduction in the number of centers, highlight the importance of carefully reviewing and understanding all terms and conditions of the Development Agreement before signing.