Even after termination of the Aira Fitness franchise agreement, what obligations will the franchisee remain liable for?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Reversion of Rights; Discontinuation of Trademark Use. All of your rights to the use of the Marks and all other rights and licenses granted in this Agreement and the right and license to conduct business under the Marks at the Authorized Location will revert to us without further act or deed of any party. All of your right, title and interest in, to and under this Agreement will become our property. You must immediately comply with the postterm non-compete obligations under Section 11.D, cease all use and display of the Marks and of any proprietary material (including the Manual) and of all or any portion of promotional materials furnished or approved by us, assign all right, title and interest in the telephone numbers for the Aira Fitness Business and cancel or assign, at our option, any assumed name rights or equivalent registrations filed with authorities. You must pay all sums due to us, our affiliates or designees and all sums you owe to third parties that have been guaranteed by us or any of our affiliates. You must immediately return to us, at your expense, all copies of the Manuals then in your possession or control or previously disseminated to your employees and continue to comply with the confidentiality provisions of Section 6.I. You must promptly at your expense and subject to Section 15.B, remove or obliterate all Aira Fitness Business signage, displays or other materials in your possession at the Authorized Location or elsewhere that bear any of the Marks or names or material confusingly similar to the Marks and so alter the appearance of the Aira Fitness Business as to differentiate the Aira Fitness Business unmistakably from duly licensed Aira Fitness Businesses identified by the Marks. If, however, you refuse to comply with the provisions of the preceding sentence within thirty (30) days, we have the right to enter the Authorized Location and remove all Aira Fitness Business signage, displays or other materials in your possession at the Authorized Location or elsewhere that bear any of the Marks or names or material confusingly similar to the Marks, and you must reimburse us for our costs incurred. You are responsible for reimbursing members for all pre-paid services not rendered. Notwithstanding the foregoing, in the event of expiration or termination of this Agreement, you will remain liable for your obligations pursuant to this Agreement or any other agreement between you and us or our affiliates that expressly or by their nature survive the expiration or termination of this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, even after the termination or expiration of the Franchise Agreement, a franchisee remains liable for certain obligations. Specifically, all rights to use Aira Fitness's marks and licenses revert back to the company, and the franchisee must immediately stop using and displaying the marks or any proprietary material. The franchisee must also assign the telephone numbers for the Aira Fitness business to the company and cancel any assumed name rights.
Financially, the franchisee must pay all sums due to Aira Fitness, its affiliates, or designees, as well as any sums owed to third parties that Aira Fitness or its affiliates have guaranteed. The franchisee is also responsible for reimbursing members for any pre-paid services that were not rendered.
Furthermore, the franchisee's obligations under the agreement or any other agreement with Aira Fitness or its affiliates that expressly or by their nature survive the termination will remain in effect. The franchisee is also obligated to comply with post-term non-compete obligations and confidentiality provisions as outlined in other sections of the agreement. If the franchisee fails to remove Aira Fitness signage and materials within thirty days of termination, Aira Fitness has the right to enter the location and remove them at the franchisee's expense.