What is the deadline for acquiring a site for the Aira Fitness business as described in Item 12, and how does this relate to the pre-opening obligations outlined in Item 11?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rized Location. You must operate the Aira Fitness Business only at the location identified, or to be identified on the Summary Page (the "Authorized Location"). If the Authorized Location is not known at the time this Agreement is signed, you must acquire an acceptable site for the Aira Fitness Business premises no later than ninety (90) days from the Effective Date of this Agreement, at which time you authorize us to insert the Authorized Location on the Summary Page. You must identify a site for the Aira Fitness Business that meets our site selection criteria and that is located within the Preliminary Designated Area identified in the Summary Page (see Section 5.A). You may not use the Aira Fitness Business premises or Authorized Location for any purpose other than the operation of an Aira Fitness Business during the term of this Agreement.
- C. Designated Area. The Preliminary Designated Area identified on the Summary Page, if any, is the general location where you intend to secure a site for the Aira Fitness Business. If a Preliminary Designated Area isspecified on the Summary Page, we will not grant anyone else the right to develop or operate an Aira Fitness Business in the Preliminary Designated Area for ninety (90) days from the Effective Date of this Agreement.
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if the Authorized Location is not known when the Franchise Agreement is signed, the franchisee must acquire an acceptable site for the Aira Fitness Business within 90 days from the Effective Date of the agreement. The franchisee authorizes Aira Fitness to insert the Authorized Location on the Summary Page once the site is acquired.
This requirement is directly related to the pre-opening obligations outlined in Item 11, as site selection is a crucial first step. Item 11 states that Aira Fitness will provide site selection criteria and general design requirements. The franchisee must identify a site within the Preliminary Designated Area that meets Aira Fitness's criteria. Aira Fitness will consider factors such as rent amount, population demographics, and competition when evaluating the site. Within 15 days of receiving all requested information about the site, Aira Fitness will notify the franchisee of its approval or denial.
The FDD also states that the typical length of time between signing the Franchise Agreement and opening the Aira Fitness Business is one to six months. This timeframe depends on factors like site selection, leasing arrangements, financing, leasehold improvements, equipment installation, and meeting local requirements. Failing to acquire an acceptable site within 90 days or open the business within 180 days of signing the Franchise Agreement may result in termination of the agreement.
Therefore, securing a site within the stipulated 90-day period is not just a contractual obligation but also a critical milestone that impacts the franchisee's ability to fulfill other pre-opening obligations and adhere to the overall timeline for launching the Aira Fitness business. Prospective franchisees should carefully consider their ability to identify and secure a suitable location within this timeframe, taking into account local market conditions and the franchisor's approval process.