What evidence of insurance coverage must the Aira Fitness franchisee provide to the Franchisor's Affiliate?

According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee must furnish the Franchisor's Affiliate with a certificate of insurance or other evidence satisfactory to the Franchisor's Affiliate that such insurance coverage is in effect. This certificate serves as proof that the franchisee has obtained the required insurance and that the coverage is active. The Franchisor's Affiliate, however, is under no duty to ascertain the existence of or examine such insurance policy or to advise Franchisee in the event such insurance coverage shall not comply with the requirements.

The insurance policy must name the franchisee as an insured and the Franchisor's Affiliate as an additional insured and loss payee, reflecting the Affiliate's financial interest in the equipment. The policy should also include cross-liability endorsements, which protect each insured party against claims made by the other. Furthermore, the insurance policy must contain a clause requiring the insurer to provide the Franchisor's Affiliate with at least 30 days prior written notice of any material alteration in the terms of the policy or of its cancellation.

This requirement ensures that the Franchisor's Affiliate is protected against potential losses or liabilities related to the leased equipment. By requiring the franchisee to provide evidence of insurance and to include the Affiliate as an additional insured, Aira Fitness aims to mitigate risks and maintain financial stability within its franchise system. However, the franchisee bears the responsibility of ensuring that the insurance coverage complies with the requirements, as the Franchisor's Affiliate has no duty to examine the policy or advise on its compliance.