Who determines how the equipment is disposed of after an Aira Fitness franchisee's default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time as we require, you must replace items of equipment as may be necessary for your Aira Fitness Business to conform to the standards for similarly situated new Aira Fitness Businesses.
For instance, we require that you replace all fitness equipment within three years of the Effective Date of this Agreement.
If you choose to purchase the fitness equipment, at the end of each three year period, you may offer your old equipment to anyone, but we have the right of first refusal to buy the equipment on the same terms and conditions as any potential buyer.
You must give us seven (7) days' written notice of any potential sale of your old equipment and a reasonable opportunity to match any offer you have that you intend to accept.
We are under no obligation to actually exercise our right of first refusal.
If you choose to lease the fitness equipment, at the end of each three year period, you must return the old equipment to the designated or approved supplier of the fitness equipment or otherwise per the terms of the equipment lease, which designated or approved supplier may be us or our affiliate.
You must then enter into a purchase agreement or lease for replacement equipment with a designated or approved, which may be us or our affiliate.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document (FDD) outlines equipment modernization and replacement requirements. Aira Fitness requires franchisees to modernize their business within five years of the agreement's effective date and replace all fitness equipment within three years.
If a franchisee chooses to purchase equipment, they can offer their old equipment to anyone after the three-year period, but Aira Fitness retains the right of first refusal to buy the equipment under the same terms as any other potential buyer. The franchisee must provide Aira Fitness with seven days' written notice of any potential sale and a reasonable opportunity to match the offer. However, Aira Fitness is not obligated to exercise this right.
If the franchisee chooses to lease the fitness equipment, they must return the old equipment to the designated or approved supplier at the end of each three-year period, according to the terms of the equipment lease. This supplier may be Aira Fitness or one of its affiliates. The franchisee must then enter into a new purchase agreement or lease for replacement equipment with a designated or approved supplier, which again may be Aira Fitness or its affiliate. The FDD does not specify who determines how the equipment is disposed of after an Aira Fitness franchisee's default.