Who determines how the Pod is disposed of after an Aira Fitness franchisee's Event of Default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Remedies. Upon the occurrence of any Event of Default and at any time thereafter, Franchisor's Affiliate may, with or without cancelling this Lease, in its sole discretion, do any one or more of the following:
(b) If Franchisor's Affiliate decides, in its sole discretion, not to take possession of the Pod, Franchisor's Affiliate continues to be the owner of the Pod and may, but is not obligated to, dispose of the Pod by sale or otherwise, all of which determinations may be made by Franchisor's A
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if an Aira Fitness franchisee experiences an Event of Default, Franchisor's Affiliate has the authority to decide how to handle the Pod. Specifically, Franchisor's Affiliate can choose whether or not to take possession of the Pod.
Even if Franchisor's Affiliate decides not to take possession, it retains ownership of the Pod. In this case, Franchisor's Affiliate has the option, but not the obligation, to dispose of the Pod through sale or other means. The FDD states that Franchisor's Affiliate has sole discretion in making these determinations.
This arrangement is important for a prospective Aira Fitness franchisee to understand. The franchisee does not have control over the disposal of the Pod in the event of a default. The Franchisor's Affiliate maintains the right to decide the Pod's fate, which could have financial implications for the franchisee depending on the terms of their lease agreement and the method of disposal.