What constitutes an event of default under the Aira Fitness lease agreement if the franchisee is in default under any other agreement with the Franchisor's Affiliate?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(iii) FRANCHISEE ACCEPTS THE CONDITION OF THE EQUIPMENT AS DELIVERED ON:
| Date: | |--------------| | Franchisee: | | By: | | (Print Name) |
EXHIBIT 1 TO PURCHASE AGREEMENT
List of Initial Fitness Equipment
EXHIBIT G FITNESS EQUIPMENT LEASE
FITNESS EQUIPMENT LEASE AGREEMENT
| THIS LEASE | AGREEMENT (the "Agreement") is made on the day of, 20, | |
|---|---|---|
| (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company | ||
| ("Franchisor's Affiliate") and, a, | ||
| (hereinafter called "You" or "Franchisee") for the lease | of Fitness Equipment for Franchisee's Aira Fitness | |
| franchise business located at ("Business Premises"). | ||
| WITNESSETH | ||
| WHEREAS, Franchisee | and Franchisor's | |
| owns and operates an Aira Fitness franchise business | ||
| Affiliate | ||
| is in the business of leasing and selling fitness equipment to Aira Fitness franchisees; | ||
| WHEREAS, Franchisor's Affiliatedesires to provide for Franchisee's equipment needs as they | ||
| arise from time to time by supplying it equipment. | ||
| WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is | ||
| leasing to Franchisee the equipment listed on Schedule 1 to this Agreement on the terms | ||
| described in this Agreement. | ||
| NOW THEREFORE, intending to be legally bound, the parties agree as follows: | ||
| 1. | Basic Lease Terms. | |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC |
| 600 Rt. 59 | ||
| Ingleside, IL 60041 | ||
| Attn: Mike Bell | ||
| With a copy of all notices going to: | Huck Bouma PC | |
| (Franchisor's Affiliate) | 1755 S. Naperville Rd., Ste. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the lease agreement between the franchisee and Pure Gym Equipment LLC, the Franchisor's Affiliate, specifies that certain actions or failures can trigger a default. One such event is if the franchisee defaults on any other agreement they have with the Franchisor's Affiliate. This means that if a franchisee fails to meet their obligations under any agreement with Pure Gym Equipment LLC, it will be considered a default under the lease agreement for the Aira Fitness location.
This provision is significant for prospective Aira Fitness franchisees because it links the lease agreement to all other agreements with the Franchisor's Affiliate. A default in one agreement can trigger consequences in the lease agreement, potentially leading to eviction or loss of the Aira Fitness franchise location. Franchisees must, therefore, carefully manage all their obligations to avoid triggering a default.
It is common in franchising for franchisors to include cross-default provisions in their agreements. This protects the franchisor's interests by ensuring that franchisees meet all their obligations, not just those under the franchise agreement itself. For Aira Fitness franchisees, this means understanding and complying with all agreements with Pure Gym Equipment LLC to maintain good standing under the lease.
Prospective franchisees should seek legal counsel to fully understand the implications of this cross-default provision and ensure they can meet all obligations under the lease and any other agreements with the Franchisor's Affiliate. This will help them avoid potential defaults and maintain a stable business operation.