Does the declaration of all sums due and payable for the full term of the lease include any renewal or purchase options which the Aira Fitness franchisee has contracted to pay?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ess to communication with us and provide us information regarding the Aira Fitness Business.
11. YOUR OTHER OBLIGATIONS; NON-COMPETE COVENANTS
- A. Payment of Debts. You agree to pay promptly when due: (i) all payments, obligations, assessments and taxes due and payable to us and our affiliates, suppliers, lessors, federal, state or local governments, or creditors in connection with your business; (ii) amounts related to all liens and encumbrances of every kind and character created or placed upon or against any of the property used in connection with the Aira Fitness Business or business; and (iii) all accounts and other indebtedness of every kind incurred by you in the conduct of the Aira Fitness Business or business. In the event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business. Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements; (ii) business interruption insurance covering a minimum 12 months loss of income, written on an actual loss sustained basis, including coverage for our monthly fees with us named as a loss payee with respect to those fees;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 FDD, the document does not explicitly state whether the declaration of all sums due and payable for the full term of the lease includes any renewal or purchase options that the Aira Fitness franchisee has contracted to pay. However, the FDD does address the franchisee's obligations regarding payment of debts and the franchisor's option to assume the lease under certain conditions.
According to the FDD, the franchisee is responsible for promptly paying all debts, obligations, assessments, and taxes related to the Aira Fitness business. This includes payments to suppliers, lessors, and government entities. The franchisee must also cover amounts related to liens and encumbrances on the property used for the business, as well as all other indebtedness incurred in the operation of the Aira Fitness business. If the franchisee fails to make these payments, Aira Fitness is authorized, but not required, to pay them on the franchisee's behalf, with the franchisee agreeing to promptly reimburse Aira Fitness upon demand.
Additionally, upon termination or expiration of the Franchise Agreement, Aira Fitness has the option, but not the obligation, to assume the lease for the Aira Fitness Business premises. This suggests that the lease agreement and any associated renewal or purchase options are separate from the Franchise Agreement, and Aira Fitness has the right to take over the lease if it chooses. The FDD also mentions that if the franchisee is leasing the Aira Fitness Business premises, they must renew the lease and provide written proof of their ability to remain in possession of the premises throughout the renewal period as a condition for renewing the Franchise Agreement.
To fully understand whether the declaration of all sums due includes renewal or purchase options, a prospective Aira Fitness franchisee should review the specific lease agreement for the premises and seek clarification from the franchisor regarding any financial obligations related to renewal or purchase options. It is important to understand the full scope of financial commitments associated with the lease to make an informed decision about investing in an Aira Fitness franchise.