In the event a developer controls, is controlled by, or is in active concert with another developer of Aira Fitness, is the joinder of those parties to any arbitration permitted?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) The foregoing notwithstanding, in the event Developer controls, is controlled by, or is in active concert with another developer of Franchisor, or there is a guarantor of some or all of Developer's obligations to Franchisor, then the joinder of those parties to any arbitration between Franchisor and Developer shall be permitted, and in all events, the joinder of an owner, director, officer, member, manager, partner or other representative or agent of Franchisor or Developer shall be permitted.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, in cases where a developer controls, is controlled by, or is in active concert with another Aira Fitness developer, the joinder of those parties to any arbitration between Aira Fitness and the developer is allowed. Additionally, the joinder of an owner, director, officer, member, manager, partner, or other representative or agent of Aira Fitness or the developer is also permitted in arbitration proceedings.
This clause provides clarity on the scope of arbitration, particularly in situations involving multiple related parties. It ensures that all relevant parties who have a significant connection to the dispute can be included in the arbitration process, promoting efficiency and consistency in resolving disputes. This can be particularly relevant in franchise systems where multiple units may be owned or controlled by the same entity or individuals.
However, it's important to note that this allowance for joinder does not extend to other scenarios. The FDD explicitly states that arbitration will be conducted on an individual basis and cannot be joined or consolidated with any other arbitration proceeding between Aira Fitness and any other person or entity. This means that franchisees cannot bring class action lawsuits or consolidate their claims with other franchisees in arbitration against Aira Fitness. This limitation on proceedings is a common practice in franchise agreements, designed to manage the franchisor's risk and prevent large-scale arbitration claims.