Who determines the terms and notice for the re-lease or sale of the Pod by Aira Fitness?
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").
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document (FDD) outlines the procedures regarding the lease of the Pod, which is the physical structure housing the Aira Fitness business. Pure Gym Equipment LLC, identified as the "Franchisor's Affiliate," leases the Pod to the franchisee. The terms of this lease are detailed in a lease agreement between the franchisee and Pure Gym Equipment LLC.
According to the FDD, Aira Fitness has the right to receive written notice from the landlord (presumably Pure Gym Equipment LLC) in the event of any default or violation by the tenant (the franchisee) under the terms of the lease. Aira Fitness also has the option, but not the obligation, to cure the default and assume the franchisee's interest in the lease. This indicates that Aira Fitness maintains some control and oversight regarding the lease terms and potential re-lease of the Pod.
Furthermore, the FDD states that the tenant (franchisee) has the right to assign their interest in the lease to Aira Fitness or its successor or affiliates at any time during the lease term, without needing the landlord's consent. If Aira Fitness assumes the lease, it has the right to sublease the premises to another Aira Fitness franchisee without further approval from the landlord. This clause provides Aira Fitness with flexibility in maintaining the operation of the franchise at the location, even if the original franchisee defaults or transfers the business. However, the document does not specifically state who determines the terms and notice for the re-lease or sale of the Pod.
While the FDD excerpts provide information on the lease agreement, assignment, and Aira Fitness's rights in case of default, it does not explicitly detail who determines the terms and notice for the re-lease or sale of the Pod. A prospective franchisee should seek clarification from Aira Fitness regarding the specific procedures and decision-making process involved in the re-lease or sale of the Pod, including who sets the terms, what notice requirements exist, and what role the franchisee plays in the process.