What is the definition of 'Lease' in the context of an Aira Fitness franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
: (i) RECEIPT OF THE PURCHASED EQUIPMENT, (ii) THAT FRANCHISEE HAS HAD THE OPPORTUNITY TO INSPECT THE CONDITION OF THE PURCHASED EQUIPMENT, AND (iii) FRANCHISEE ACCEPTS THE CONDITION OF THE EQUIPMENT AS DELIVERED ON:
| Date: | |--------------| | Franchisee: | | By: | | (Print Name) |
EXHIBIT 1 TO PURCHASE AGREEMENT
Pod Specifications
EXHIBIT I POD PACKAGE LEASE
POD LEASE AGREEMENT
| THIS LEASE Premises"). | 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 Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's | |
|---|---|---|---|
| WITNESSETH | |||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular | |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell | |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 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 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 Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of | |
| (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." | ||
| (e) | The "Commencement Date" of the Term shall be upon delivery of the Pod, the specifications of which are listed in Schedule 1 to this Agreement. |
- (f) The "Expiration Date" of the Term shall be the last day of the thirty-sixth (36th) full calendar month following the Commencement Date.
- (g) On the Effective Date, Franchisee shall pay to Franchisor a nonrefundable deposit equal to Twelve Thousand Dollars ("Nonrefundable Deposit Amount").
- (h) On the Effective Date, Franchisee shall pay to Franchisor's Affiliate a nonrefundable delivery fee equal to: ________________ ("Delivery Fee").
Lease.
- (a) Franchisor's Affiliate hereby agrees to lease to Franchisee and Franchisee hereby agrees to lease from Franchisor's Affiliate, subject to the terms of this Pod Lease Agreement (the "Pod Lease"), the Pod (together with all attachments, replacements, parts, substitutions, additions, repairs, accessions and accessories, incorporated therein and/or affixed, thereto) (the "Pod") described in any Schedule to Pod Lease (a "Schedule") subsequently executed by the parties hereto and incorporating the terms of this Pod Lease by reference therein (the "Lease").
- (b) The Pod is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Pod, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease.
- **Term and Rent;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the term 'Lease' refers to an agreement where a franchisee secures the premises for their Aira Fitness business. This involves leasing either a traditional fitness center space or a pre-fabricated modular building referred to as a 'Pod.' The franchisee ('Tenant') enters into a lease agreement with a landlord, and Aira Fitness has specific rights and responsibilities related to this lease. The lease agreement is a critical component, as the franchisee cannot operate an Aira Fitness business without securing an approved location and lease.
According to the FDD, Aira Fitness retains the right to assume the franchisee's interest in the lease under certain conditions, such as the expiration or termination of the Franchise Agreement. This provision protects Aira Fitness's ability to maintain control over the location and continued operation of an Aira Fitness business. The franchisor can also assign the lease to another franchisee without the landlord's consent, provided they notify the landlord in writing. This flexibility allows Aira Fitness to ensure business continuity and brand consistency.
The FDD also outlines specific stipulations in an addendum to the lease agreement. This addendum ensures that the landlord acknowledges Aira Fitness's rights and responsibilities, including the right to remodel and decorate the premises according to Aira Fitness standards. It also states that the landlord cannot place a lien on the franchisee's personal property used for the Aira Fitness operation. The addendum clarifies that the franchisee is not an agent or employee of Aira Fitness, and Aira Fitness assumes no liability related to the lease unless it explicitly assumes the lease as per the agreement's terms.
Prospective Aira Fitness franchisees should carefully review the lease agreement and addendum, understanding their obligations and Aira Fitness's rights. It is essential to ensure that the lease terms are favorable and align with the franchisee's business plan. Franchisees should also be aware of the conditions under which Aira Fitness can assume the lease, as this could impact their long-term control over the business location. Consulting with a legal professional experienced in franchise agreements is advisable to fully understand the implications of the lease and addendum.