Does the Aira Fitness franchise agreement allow the arbitrator to make any award which extends, modifies or suspends any lawful term of the agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the arbitrator is not authorized to make any award that extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance that Aira Fitness sets.
This limitation on the arbitrator's authority protects Aira Fitness by ensuring that the arbitrator cannot unilaterally change the terms of the franchise agreement. This provision helps maintain the uniformity and predictability of the franchise system, as it prevents an arbitrator from imposing terms that deviate from the standard agreement.
For a prospective franchisee, this means that any dispute resolution through arbitration will be limited to interpreting the existing terms of the agreement, rather than altering them. Franchisees should be aware that the arbitrator's role is to apply the agreement as written, which could be beneficial or detrimental depending on the specific circumstances of the dispute. Franchisees should seek legal counsel to understand the implications of this clause and how it might affect their rights in case of a disagreement with Aira Fitness.