Does the Aira Fitness Development Agreement specify who bears the expense of complying with state and federal franchise laws during a transfer?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ing to this Agreement, your Aira Fitness Business or the parties' business relationship; provided, however, that the release will not be inconsistent with any state law regulating franchising.
-
- Training. The transferee must, at your or the transferee's expense, comply with the training requirements of Section 7.B.
-
- Financial Reports and Data. We have the right to require you to prepare and furnish to transferee and/or us such financial reports and other data relating to the Aira Fitness Business and its operations as we deem reasonably necessary or appropriate for transferee and/or us to evaluate the Aira Fitness Business and the proposed transfer.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document does not explicitly state who bears the expense of complying with state and federal franchise laws during a transfer. However, it does state that the franchisee or the transferee must cover the expense of the transferee's training requirements.
Item 12 within Section C outlines several transfer conditions. These include the need for the potential transferee to apply for consent, meet training requirements, and pay a transfer fee if applicable. The transfer fee is $5,000 if the transferee is an existing Aira Fitness franchisee; otherwise, the fee is the then-current initial franchise fee. The document also states that the franchisee, each owner, and each guarantor must execute all required transfer documents, including a general release of claims, provided that the release is consistent with state franchise laws.
Prospective franchisees should seek clarification from Aira Fitness regarding responsibility for covering the costs associated with legal compliance during the transfer process. This will help ensure a clear understanding of the financial obligations involved in transferring the franchise.