In the context of the Lease Addendum, what is the 'Lease' referring to for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: **RECEIPTS]
- to a franchise agreement ("Franchise Agreement") with Aira Fitness Franchising LLC. ("Aira Fitness").
- C. The parties desire to amend the Lease in accordance with the terms and conditions contained in this Addendum.
AGREEMENT
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- Remodeling and Décor. Landlord agrees to allow Tenant to remodel, equip, paint and decorate the interior of the Premises and to display such proprietary marks and signs on the interior and exterior of the Premises pursuant to the Franchise Agreement and any successor Franchise Agreement.
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- Assignment. Tenant has the right to assign all of its right, title and interest in the Lease to Aira Fitness or its successor, or either company's affiliates, at any time during the term of the Lease, including any extensions or renewals, without first obtaining Landlord's consent. No assignment will be effective, however, until Aira Fitness or its successor or designated affiliate gives Landlord written notice of its acceptance of the assignment. If Aira Fitness elects to assume the lease under this paragraph or unilaterally assumes the lease as provided for in subparagraphs 3(c) or 4(a), Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations, including amounts owed to Landlord, prior to the date of assignment and assumption, and (ii) Aira Fitness will have the right to sublease the Premises to another AIRA FITNESS franchisee, without further need for Landlord approval, provided the franchisee agrees to operate the Aira Fitness Business as an Aira Fitness Business pursuant to a franchise agreement with Aira Fitness. Aira Fitness will be responsible for the lease obligations incurred after the effective date of the assignment.
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- No Lien. Landlord agrees not to require a security interest or lien on any of the personal property of the Tenant located on the Premises used for the operation of the Aira Fitness franchise.
4. Default and Notice.
[Item 23: **RECEIPTS]
4. Termination or Expiration.
- (a) Upon the expiration or termination of the Franchise Agreement, Aira Fitness has the right (but not the obligation) to unilaterally assume Tenant's interest in the Lease in accordance with Paragraph 2.
- (b) Upon the expiration or termination of the Lease, if Aira Fitness does not assume Tenant's interest in the Lease, Landlord agrees to cooperate and allow Aira Fitness to enter the Premises, without cost and without being guilty of trespass and without incurring any liability to Landlord, to remove all signs and all other items identifying the Premises as an Aira Fitness Business and to make such other modifications as are reasonably necessary to protect the marks and system, and to distinguish the Premises from Aira Fitness Businesses. In the event Aira Fitness exercises its option to purchase assets of Tenant, Landlord agrees to permit Aira Fitness to remove all such assets being purchased by Aira Fitness.
5. Consideration; No Liability.
- (a) Landlord acknowledges that the provisions of this Addendum are required pursuant to the Franchise Agreement and that Tenant may not lease the Premises without this Addendum.
- (b) Landlord acknowledges that Tenant is not an agent or employee of Aira Fitness and Tenant has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Aira Fitness or any affiliate of Aira Fitness and that Landlord has entered into this Addendum with full understanding that it creates no duties, obligations, or liabilities of or against Aira Fitness or any affiliate of Aira Fitness.
- (c) Nothing contained in this Addendum makes Aira Fitness or its affiliates a party or guarantor to the Lease, and does not create any liability or obligation of Aira Fitness or its affiliates.
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- Modification. No amendment or variation of the terms of this Addendum is valid unless made in writing and signed by the parties and the parties have obtained Aira Fitness's written consent.
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- Reaffirmation of Lease. Except as amended or modified by this Addendum, all of the terms, conditions, and covenants of the Lease remain in full force and effect.
8. Miscellaneous.
| 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. 200 | |
| Wheaton, IL 60189 | ||
| Attn: Alissa Carter Verson | ||
| (b) | Franchisee's Address for Notice: | |
| With a copy of all notices going to: | ||
| (Franchisee): | ||
| (c) | Concurrently with the execution of this Agreement by Franchisee, as a condition of and | |
| a material inducement of Franchisor's Affiliate's obligations under this Agreement, | ||
| , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a | currently of | |
| Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full | ||
| performance under this Agreement. | ||
| (d) | The period commencing on the Commencement Date of the Term and ending on the | |
| Expiration Date of the Term, is referred to in this Agreement as the "Term." |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness FDD, the 'Lease' in the Lease Addendum refers to the agreement between the landlord and the Aira Fitness franchisee for the premises where the Aira Fitness business will operate. The Lease Addendum modifies the original lease agreement to include specific provisions that protect Aira Fitness's interests. These provisions include the right for the franchisee to remodel and decorate the premises according to Aira Fitness standards, and the right for Aira Fitness to assume the lease under certain conditions, such as termination or expiration of the franchise agreement.
Specifically, the Lease Addendum ensures that Aira Fitness can maintain control over the location and branding of its franchises. For example, Aira Fitness has the right to enter the premises to remove signage and branding elements if the franchise agreement or the lease is terminated and Aira Fitness does not assume the lease. This protects Aira Fitness's brand identity and prevents unauthorized use of its trademarks. The addendum also states that the landlord acknowledges that the provisions within it are required as part of the Franchise Agreement, emphasizing the importance of the addendum for the franchisee to secure the location.
Furthermore, the Lease Addendum addresses the possibility of the franchisee defaulting on the lease. It outlines the conditions under which Aira Fitness can step in to assume the lease, protecting the business location. This is a significant benefit for Aira Fitness, as it allows them to maintain a presence in a particular market even if a franchisee is unable to continue operating the business. The addendum also clarifies that Aira Fitness is not liable for the franchisee's obligations under the lease unless Aira Fitness explicitly assumes the lease.
In addition to the standard lease agreement for the business premises, there is also a separate lease agreement for fitness equipment. This agreement is between the franchisee and Pure Gym Equipment LLC, which is an affiliate of the franchisor. This equipment lease covers the fitness equipment used in the Aira Fitness franchise and includes terms for the lease period, commencement date, and other relevant conditions. A guarantor may be required to ensure the franchisee's performance under this equipment lease agreement.