What is the 'Effective Date' referring to in the context of the Aira Fitness equipment lease agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(iii) FRANCHISEE ACCEPTS THE CONDITION OF THE EQUIPMENT AS DELIVERED ON:
| Date: | |--------------| | Franchisee: | | By: | | (Print Name) |
EXHIBIT 1 TO PURCHASE AGREEMENT
List of Initial Fitness Equipment
EXHIBIT G FITNESS EQUIPMENT LEASE
FITNESS EQUIPMENT LEASE AGREEMENT
| THIS LEASE | AGREEMENT (the "Agreement") is made on the day of, 20, | |
|---|---|---|
| (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company | ||
| ("Franchisor's Affiliate") and, a, | ||
| (hereinafter called "You" or "Franchisee") for the lease | of Fitness Equipment for Franchisee's Aira Fitness | |
| franchise business located at ("Business Premises"). | ||
| WITNESSETH | ||
| WHEREAS, Franchisee | and Franchisor's | |
| owns and operates an Aira Fitness franchise business | ||
| Affiliate | ||
| is in the business of leasing and selling fitness equipment to Aira Fitness franchisees; | ||
| WHEREAS, Franchisor's Affiliatedesires to provide for Franchisee's equipment needs as they | ||
| arise from time to time by supplying it equipment. | ||
| WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is | ||
| leasing to Franchisee the equipment listed on Schedule 1 to this Agreement on the terms | ||
| described in this Agreement. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Effective Date in the context of the equipment lease agreement refers to the date on which the lease agreement is made. Specifically, the lease agreement is established between Pure Gym Equipment LLC, identified as the "Franchisor's Affiliate," and the franchisee. This date is crucial because certain obligations and timelines are tied to it.
For a prospective Aira Fitness franchisee, the Effective Date marks the starting point for several critical requirements. For example, the franchisee may be required to modernize the Aira Fitness business within five years of this date. Additionally, there is a requirement to replace all fitness equipment within three years of the Effective Date. These stipulations ensure that the Aira Fitness business maintains a consistent standard and remains appealing to the public.
The lease agreement outlines that the franchisee is leasing fitness equipment from the Franchisor's Affiliate, with the specific equipment listed in Schedule 1 of the agreement. The agreement also specifies notice procedures, including addresses for both the Franchisor's Affiliate and the franchisee. Furthermore, a guarantor may be required to ensure the franchisee's full performance under the lease agreement, adding another layer of security for the franchisor. The "Term" of the lease is defined as the period between the "Commencement Date" (upon delivery of the Pod) and the "Expiration Date."