For the Aira Fitness development agreement, what section defines the expiration or termination of rights?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
4. TERM AND RIGHT OF FIRST REFUSAL
- 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 the 2025 Aira Fitness Franchise Disclosure Document, Section 4.1 outlines the term and potential termination of the Development Agreement. Unless terminated earlier, the agreement expires when the franchisee signs a Franchise Agreement for the final franchise to be developed under the Development Agreement. The term of the Development Agreement is independent of any franchise agreement, lease, or other agreement related to an Aira Fitness Center. The agreement does not offer any renewal rights, and all rights to the Development Area expire upon the Development Agreement's expiration.
Section 7.4 further clarifies that upon termination or expiration, all remaining rights to establish and open Aira Fitness Centers under the Development Agreement, for which a Franchise Agreement hasn't been executed, become void. The franchisee loses the right to establish or operate any Aira Fitness Centers if a Franchise Agreement hasn't been executed before the termination or expiration date. Aira Fitness retains the right to establish, either directly or through a third party, an Aira Fitness Center within the Development Territory, provided it doesn't violate any territorial protections granted under existing individual Franchise Agreements.
Section 15 details post-term obligations, including the reversion of rights and discontinuation of trademark use. All rights to use Aira Fitness's marks and licenses revert to Aira Fitness, and the franchisee must cease using and displaying the marks and proprietary materials. The franchisee must also comply with post-term non-compete obligations. These sections collectively define the conditions and consequences related to the expiration or termination of rights under the Aira Fitness Development Agreement.