factual

In the event of a lawsuit, does the Aira Fitness Guaranty specify where the Guarantor must submit to jurisdiction?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

A. Arbitration; Mediation. Except as qualified below, any dispute between you and us and any of our or your affiliates, officers, directors, shareholders, members, guarantors, employees or owners arising under, out of, in connection with or in relation to this Agreement, any lease for the Aira Fitness Business or Authorized Location, the parties' relationship, the Aira Fitness Business, our Standards, or the scope or validity of the arbitration obligations under this Section must be submitted to binding arbitration under the authority of the Federal Arbitration Act and must be arbitrated in accordance with the then-current rules and procedures and under the auspices of the American Arbitration Association ("AAA"). Any arbitration must be on an individual basis, and not as part of a consolidated, common, or class action, and you and/or your Owners waive any right to proceed on a consolidated, common, or class basis. Multiparty arbitration is specifically excluded, and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or other proceeding involving third parties. In the event a court or arbitrator determines that this exclusion of multiparty arbitration (including class arbitration) is unenforceable, then this entire commitment to arbitrate will be null and void and the parties must submit all claims to the jurisdiction of the courts. Arbitration shall take place in the Chicago, Illinois metropolitan area. The arbitrators must follow the law and not disregard the terms of this Agreement. Any arbitrator must have at least five years' experience in franchising or in franchise law.

Any unappealed decision of the arbitrator(s) will be final and binding on all parties to the dispute; however, the arbitrator(s) shall have no authority to: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; (iii) certify a class or consolidate an action, or (iv) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set. A judgment may be entered upon the arbitration award by any court of competent jurisdiction.

Source: Item 23 — **RECEIPTS (FDD pages 59–254)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, disputes are resolved through binding arbitration. The FDD specifies that any arbitration must take place in the Chicago, Illinois metropolitan area. This applies to disputes between the franchisee and Aira Fitness, as well as their respective affiliates, officers, directors, shareholders, members, guarantors, employees, or owners. Therefore, guarantors are subject to jurisdiction in Chicago, Illinois for arbitration proceedings.

The arbitration process is managed under the rules of the American Arbitration Association (AAA) and is governed by the Federal Arbitration Act. The agreement emphasizes that arbitration must be conducted on an individual basis, explicitly prohibiting consolidated, common, or class action lawsuits. This means each franchisee or guarantor must address their disputes separately.

It is important to note that the arbitrator's authority is limited. They cannot halt a pending termination of the franchise agreement, award punitive damages, certify a class action, or modify any lawful term of the agreement. The arbitrator must have at least five years of experience in franchising or franchise law. The decision reached by the arbitrator is final and binding, and a judgment can be entered in any court with competent jurisdiction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.