Is a developer of Aira Fitness allowed to commence arbitration with a third party against the franchisor?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither party shall commence any arbitration with a third party against the other, or join with any third party in any arbitration involving Franchisor and Developer.
Further, neither Franchisor nor Developer shall attempt to consolidate or otherwise combine in any manner, an arbitration proceeding involving Franchisor and Developer with another arbitration of any kind, nor shall Franchisor or Developer attempt to certify a class or participate as a party in a class action against the other.
- (b) The foregoing notwithstanding, in the event Developer controls, is controlled by, or is in active concert with another developer of Franchisor, or there is a guarantor of some or all of Developer's obligations to Franchisor, then the joinder of those parties to any arbitration between Franchisor and Developer shall be permitted, and in all events, the joinder of an owner, director, officer, member, manager, partner or other representative or agent of Franchisor or Developer shall be permitted.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a developer is restricted from starting arbitration with a third party against Aira Fitness. The agreement explicitly states that neither party, which includes both Aira Fitness and the developer, can initiate any arbitration involving a third party against the other party. This also means that the developer cannot join with a third party in any arbitration case that involves Aira Fitness.
This limitation is further reinforced by the clause that prevents the consolidation or combination of an arbitration proceeding involving Aira Fitness and the developer with any other type of arbitration. Additionally, neither Aira Fitness nor the developer is allowed to certify a class or participate in a class action against each other. These restrictions are designed to ensure that any disputes are handled on an individual basis, maintaining a direct relationship between the franchisor and the developer without external complications.
However, there are exceptions to this rule. If the developer is under the control of, controlled by, or actively working in concert with another Aira Fitness developer, or if there is a guarantor for the developer's obligations to Aira Fitness, the joinder of those parties in an arbitration between Aira Fitness and the developer is permitted. Additionally, the inclusion of an owner, director, officer, member, manager, partner, or other representative or agent of either Aira Fitness or the developer is also allowed in arbitration proceedings.