What is the duration that proceedings instituted against an Aira Fitness franchisee must continue undismissed to constitute an event of default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) if Debtor becomes insolvent, commits an act of bankruptcy, files a voluntary petition in bankruptcy, or an involuntary petition in bankruptcy is filed, or a permanent or temporary receiver or trustee for the Aira Fitness Business, or all or substantially all of the Debtor's property, is appointed by any court and such appointment is not actively opposed through legal action, or Debtor makes an assignment or arrangement for the benefit of creditors, or calls a meeting of creditors, or Debtor makes a written statement to the effect that he or it is unable to pay his or its debts as they become due, or a levy of execution is made upon Debtor, or an attachment or lien outstanding with respect to the Aira Fitness Business for thirty (30) days, unless the attachment or lien is being duly contested in good faith by Debtor and Secured Party is advised in writing
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if an attachment or lien is outstanding with respect to the Aira Fitness Business for thirty (30) days, it constitutes an event of default, unless the attachment or lien is being duly contested in good faith by the Debtor and Secured Party is advised in writing.
This means that if a legal claim (attachment or lien) is made against an Aira Fitness franchise, the franchisee has 30 days to resolve the issue or demonstrate that they are actively and genuinely fighting the claim. If the issue remains unresolved after 30 days and is not being contested in good faith, Aira Fitness can declare the franchisee in default.
This clause protects Aira Fitness from potential financial or legal liabilities arising from unresolved claims against its franchisees. It also motivates franchisees to address legal issues promptly to avoid jeopardizing their franchise agreement. Franchisees should ensure they have a clear process for handling legal notices and disputes to comply with this requirement.