Does the Aira Fitness Development Agreement contain any right to renewal?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1 Unless sooner terminated in accordance with the terms of this Agreement, the term of this Agreement shall expire on the date you sign a Franchise Agreement for the last franchise to be developed under this Agreement. The term of this Agreement is not related or affected by the term of any franchise agreement, lease, or other agreement related to any Aira Fitness Center. This Agreement does not contain or create any right to renewal. Notwithstanding Section 4.2 below, any and all rights in the Development Area granted to you under this Agreement expire upon the expiration of this Agreement.
- 4.2 Following the completion of the Development Schedule and the termination of your exclusive rights to the Development Area, provided you are in full compliance with this Agreement, you shall have the rights of first refusal set forth below:
- (a) In the event we seek to establish or license others to establish a Aira Fitness Center within the Development Area, we shall first offer you the option to establish such additional Franchised Business under our then-current terms and conditions. We shall provide you with written notice of our intent to establish or license another to establish an additional Franchised Business along with a general description of the proposed Franchised Business, a copy of the then-current Franchise Disclosure Document and Franchise Agreement and all other documents we deem necessary to include with the notice. You shall have thirty (30) days from the receipt of our notice to exercise the option to establish such additional Franchised Businesses by executing the Franchise Agreement and all other documents we require for such additional Franchised Businesses and to pay the initial fee due under the agreement. If you fail to execute the Franchise Agreement and other required documents and to pay the initial fee required under the Franchise Agreement within the said thirty (30) day period, you shall have no further right to establish or operate such additional Franchised Business. Notwithstanding the foregoing, in the event our bona fide arrangements or agreements with a bona fide third party, the lease restrictions for the proposed premises of the Franchised Business, or other circumstances or conditions related to the establishment of the additional Franchised Business, prevent
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Development Agreement does not contain any right to renewal. The term of the Development Agreement expires when the franchisee signs a Franchise Agreement for the last franchise to be developed under the Development Agreement. The expiration of the Development Agreement also means that any rights to the Development Area expire as well.
However, upon completion of the development schedule and termination of the exclusive rights to the Development Area, the franchisee has a right of first refusal, provided they are in full compliance with the Development Agreement. This means that if Aira Fitness seeks to establish or license others to establish an Aira Fitness Center within the Development Area, they must first offer the franchisee the option to establish the additional franchised business under the then-current terms and conditions.
Aira Fitness will provide written notice of their intent, including a general description of the proposed franchised business, a copy of the current Franchise Disclosure Document and Franchise Agreement, and any other necessary documents. The franchisee then has thirty days to exercise the option by executing the Franchise Agreement and paying the initial fee. Failure to do so within the thirty-day period forfeits the right to establish or operate the additional franchised business. This right of first refusal is contingent on the arrangements Aira Fitness has with a third party, lease restrictions, or other circumstances related to the establishment of the additional franchised business.