Does damage to the equipment relieve the Aira Fitness franchisee of their lease obligations?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
uipment with a designated or approved, which may be us or our affiliate.
- H. Relocation. You may not relocate your Aira Fitness Business without our prior written consent. If you need to relocate because of condemnation, destruction, or expiration or cancellation of your lease for reasons other than your breach, we will grant you authority to do so at a site acceptable to us that is within your Designated Area, is reasonably suited for an Aira Fitness Business and does not infringe on the rights of any other AIRA Fitness franchisee, provided that the new Aira Fitness Business is open and operating within sixty (60) days after you discontinue operation at the present Aira Fitness Business, all in accordance with our then-current standards. If you voluntarily decide to relocate the Aira Fitness Business, your right to relocate the Aira Fitness Business will be void
and your interest in this Agreement will be voluntarily abandoned, unless you have given us notice of your intent to relocate not less than sixty (60) days prior to closing the Aira Fitness Business, have procured a site within your Designated Area that we accept fifteen (15) days prior to such closure, have opened the new Aira Fitness Business for business within 24 hours of such closure and complied with any other conditions that we reasonably require. You must pay the costs of any relocation, and we reserve the right to charge you for any reasonable costs that we incur. Upon relocation of your Aira Fitness Business for any reason, we may modify your Designated Area, in our sole judgment, to take into account the designated areas of neighboring Aira Fitness Businesses and other factors.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 FDD, the document outlines scenarios related to relocation and damage to the Aira Fitness business location, but it does not explicitly state whether damage to equipment relieves the franchisee of their lease obligations. The FDD states that if relocation is needed due to condemnation, destruction, or lease cancellation for reasons other than the franchisee's breach, Aira Fitness will allow relocation to a suitable site within the Designated Area, provided the new business opens within 60 days.
If the Aira Fitness business is destroyed or damaged, the franchisee is required to repair and reopen the business at the authorized location within 20 days, or a longer period if reasonably determined by Aira Fitness. The FDD also mentions that upon termination or expiration of the Franchise Agreement, Aira Fitness has the right to assume the tenant's interest in the lease. Additionally, the landlord acknowledges that the franchisee is not an agent or employee of Aira Fitness, and Aira Fitness has no liability related to the lease.
While the FDD addresses scenarios involving damage to the business location and outlines obligations for repair and potential relocation, it does not directly address whether equipment damage specifically relieves the franchisee of their lease obligations. A prospective Aira Fitness franchisee should seek clarification from the franchisor regarding the specific terms and conditions of the lease agreement related to equipment damage and potential relief from lease obligations.