What constitutes default under the Aira Fitness Development Agreement if the developer fails to meet deadlines in the development schedule?
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, failing to meet any of the deadlines outlined in the Development Schedule constitutes a default under the Development Agreement. This schedule likely includes dates for signing franchise agreements, leases, purchase agreements, and commencing operations for Aira Fitness centers.
If a developer defaults, Aira Fitness has the discretion to take several actions. They can terminate the agreement and all rights granted to the developer immediately upon written notice, without any opportunity for the developer to correct the issue. Alternatively, Aira Fitness can reduce the number of Aira Fitness Centers the developer is authorized to establish and open. They can also pursue any other legal rights and remedies available to them under applicable law.
It is important to note that Aira Fitness's decision to terminate the agreement is at their sole discretion. This means that even if a developer misses a deadline by a small margin or has a reasonable excuse, Aira Fitness is still within their rights to terminate the agreement. This highlights the importance of carefully reviewing the Development Schedule and ensuring that the developer has the resources and capabilities to meet all deadlines. Prospective developers should discuss the details of the development schedule and potential flexibility with Aira Fitness before signing the agreement.