When does the Aira Fitness Development Agreement expire, according to Section 4.1?
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Section 4.1 states the Development Agreement's term concludes when you sign a Franchise Agreement for the final franchise to be developed under the Development Agreement. The expiration of the Development Agreement is not related to the term of any franchise agreement, lease, or other agreement related to any Aira Fitness Center. The agreement does not offer any right to renewal, and all rights in the Development Area expire when the Development Agreement expires.
For a prospective Aira Fitness franchisee, this means the Development Agreement's duration is tied to fulfilling the development schedule rather than a fixed period. Once franchise agreements are signed for all planned locations in the development area, the agreement ends. This structure motivates developers to open the agreed-upon number of locations to maximize their exclusive rights.
It is important to note that the expiration of the Development Agreement does not affect the terms of any existing Franchise Agreements for individual Aira Fitness centers. Those agreements will continue under their own terms. However, the developer's exclusive rights to the development area cease upon the Development Agreement's expiration, potentially allowing Aira Fitness to establish or license new locations in the area.