In the event of a breach of Section 11.D, what type of relief may Aira Fitness seek?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement and not in lieu of such right or any other rights, in the event that you have not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, we may, at our option, enter upon the premises and exercise complete authority with respect to the operation of the Aira Fitness Business until such time as we determine that the default has been cured and that there is compliance with the requirements of this Agreement.
You acknowledge and agree that our agent or other representative we designate may take over, control and operate the Business, that you shall pay us a fee for such management service, not to exceed fifteen percent (15%) of Gross Sales plus all travel expenses, room and board and other expenses actually incurred by such agent or representative so long as it shall be required to enforce compliance with this Agreement.
You further acknowledge that if we temporarily operate the Business on your behalf under this Paragraph 14.D., you will indemnify us and hold us and our agent or representative harmless and respecting any and all claims arising out of our operation of the Business under this Paragraph 14.D..
Nothing herein shall require us to operate the Business when you are in default.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, in the event of a franchisee default, Aira Fitness has the right to operate the business. If a franchisee fails to correct a default within fourteen days of receiving written notice, Aira Fitness can enter the premises and take control of the Aira Fitness business. This is in addition to Aira Fitness's right to terminate the agreement.
If Aira Fitness chooses to operate the business, the franchisee must pay Aira Fitness a management service fee. This fee will not exceed 15% of Gross Sales, in addition to covering all travel expenses, room and board, and other expenses incurred by the agent or representative managing the business. The franchisee is also responsible for indemnifying Aira Fitness and its representatives against any claims arising from their operation of the business during the default period.
It's important to note that Aira Fitness is not obligated to operate the business during the period of default. This provision allows Aira Fitness to protect its brand and ensure the continued operation of the franchise according to its standards, while shifting the financial burden and risk associated with the business's operation during the default period back to the franchisee.