Is the Equipment Purchase Price refundable for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
our other rights under this Agreement, effect such improvement or maintenance on your behalf and you must reimburse us for the costs we incur.
- G. Equipment Modernization. From time to time as we require, you must replace items of equipment as may be necessary for your Aira Fitness Business to conform to the standards for similarly situated new Aira Fitness Businesses. For instance, we require that you replace all fitness equipment within three years of the Effective Date of this Agreement. If you choose to purchase the fitness equipment, at the end of each three year period, you may offer your old equipment to anyone, but we have the right of first refusal to buy the equipment on the same terms and conditions as any potential buyer. You must give us seven (7) days' written notice of any potential sale of your old equipment and a reasonable opportunity to match any offer you have that you intend to accept. We are under no obligation to actually exercise our right of first refusal. If you choose to lease the fitness equipment, at the end of each three year period, you must return the old equipment to the designated or approved supplier of the fitness equipment or otherwise per the terms of the equipment lease, which designated or approved supplier may be us or our affiliate. You must then enter into a purchase agreement or lease for replacement equipment with a designated or approved, which may be us or our affiliate.
- H. Relocation. You may not relocate your Aira Fitness Business without our prior written consent. If you need to relocate because of condemnation, destruction, or expiration or cancellation of your lease for reasons other than your breach, we will grant you authority to do so at a site acceptable to us that is within your Designated Area, is reasonably suited for an Aira Fitness Business and does not infringe on the rights of any other AIRA Fitness franchisee, provided that the new Aira Fitness Business is open and operating within sixty (60) days after you discontinue operation at the present Aira Fitness Business, all in accordance with our then-current standards. If you voluntarily decide to relocate the Aira Fitness Business, your right to relocate the Aira Fitness Business will be void
and your interest in this Agreement will be voluntarily abandoned, unless you have given us notice of your intent to relocate not less than sixty (60) days prior to closing the Aira Fitness Business, have procured a site within your Designated Area that we accept fifteen (15) days prior to such closure, have opened the new Aira Fitness Business for business within 24 hours of such closure and complied with any other conditions that we reasonably require. You must pay the costs of any relocation, and we reserve the right to charge you for any reasonable costs that we incur. Upon relocation of your Aira Fitness Business for any reason, we may modify your Designated Area, in our sole judgment, to take into account the designated areas of neighboring Aira Fitness Businesses and other factors.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document does not explicitly state whether the equipment purchase price is refundable. However, it does outline the franchisee's obligations regarding equipment, including modernization and replacement. Franchisees are required to modernize their Aira Fitness business within five years of the agreement's effective date and replace all fitness equipment within three years.
At the end of each three-year period, franchisees have the option to sell their old equipment, but Aira Fitness retains the right of first refusal to purchase the equipment under the same terms as any potential buyer. Franchisees must provide Aira Fitness with seven days' written notice of any potential sale and the opportunity to match the offer. Alternatively, franchisees can lease the equipment and must return it to the designated supplier at the end of the lease term, which could be Aira Fitness or an affiliate, and then enter into a new purchase or lease agreement for replacement equipment.
Upon termination or expiration of the franchise agreement, Aira Fitness has the option to purchase any or all of the assets used in the business, including equipment. The purchase price will be determined by a qualified appraiser selected with the consent of both parties. If they cannot agree on an appraiser, each party will appoint their own, and those two will select a neutral appraiser. Within 45 days of receiving the appraisal report, Aira Fitness will identify the assets they intend to purchase at the appraised price. Given the absence of a specific refund policy for equipment purchases, prospective franchisees should seek clarification from Aira Fitness regarding the refundability of equipment purchases, especially in the event of early termination or other unforeseen circumstances.