What constitutes a felony that could lead to default of the Aira Fitness development agreement?

According to the 2025 Aira Fitness Franchise Disclosure Document, a felony conviction can lead to the termination of the development agreement. Specifically, if the Developer, or any of its shareholders, members, managers, partners, officers, directors or guarantors, is indicted for, convicted of, or pleads guilty to a felony, Aira Fitness can consider this a default. This also applies to a crime involving moral turpitude, or any other crime or offense that Aira Fitness believes is reasonably likely to have an adverse effect on the System, the Marks, or the goodwill associated with the System and the Marks, or Aira Fitness's interest in the System or the Marks.

This provision gives Aira Fitness broad discretion to terminate the agreement based on criminal activity of anyone associated with the development entity. It's not limited to just a felony conviction, but extends to indictments, guilty pleas, and even crimes that Aira Fitness deems to involve moral turpitude or that could harm the brand's reputation. This could include a wide range of offenses, and the determination is ultimately left to Aira Fitness's judgment.

Furthermore, Aira Fitness can terminate the agreement immediately without an opportunity to cure the default if you, any Owners, or guarantors are convicted of (or pleading no contest to) any felony or misdemeanor that brings or tends to bring any of the Marks into disrepute or impairs or tends to impair your reputation or the goodwill of the Marks or the Aira Fitness Business. This highlights the importance of ensuring that all individuals involved in the Aira Fitness development are of sound character and have no criminal history that could potentially jeopardize the franchise agreement.

Prospective franchisees should carefully consider this clause and conduct thorough background checks on all individuals involved in the ownership and management of the development entity. It would also be prudent to seek legal counsel to fully understand the scope and implications of this provision before entering into a development agreement with Aira Fitness.