Is an Aira Fitness franchisee allowed to advertise the sale of the franchise without prior written consent?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We have entered into this Agreement with specific reliance upon your financial qualifications, experience, skills and managerial qualifications as being essential to the satisfactory operation of the Aira Fitness Business. Consequently, your interest in this Agreement or in the Aira Fitness Business, or all or substantially all of the assets of the Aira Fitness Business, or any Owner's interest in a franchisee that is a partnership or entity may be transferred or assigned to or assumed by any other person or entity (the "transferee"), in whole or in part, unless you have first tendered to us the right of first refusal to acquire this Agreement in accordance with Section 12.E , and if we do not exercise such right, unless our prior written consent is obtained, the transfer fee provided for in Section 12.C is paid, if applicable, and the transfer conditions described in Section 12.C are satisfied. Any sale (including installment sale), lease, pledge, management agreement, contract for deed, option agreement, assignment, bequest, gift or otherwise, or any arrangement pursuant to which you turn over all or part of the daily operation of the business to a person or entity who shares in the losses or profits of the business in a manner other than as an employee will be considered a transfer for purposes of this Agreement. Specifically, but without limiting the generality of the foregoing, the following events constitute a transfer and you must comply with the right of first refusal, consent, transfer fee, and other transfer conditions in this Section 12:
-
- Any change or series of changes in the percentage of the franchisee entity owned, directly or indirectly, by the Owner (including any addition or deletion of any person or entity who qualifies as an Owner);
-
- Any change in the general partner of a franchisee that is a general, limited or other partnership
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 FDD, an Aira Fitness franchisee needs to obtain prior written consent from Aira Fitness before transferring their interest in the Franchise Agreement or the Aira Fitness Business. This includes any sale, lease, pledge, or any arrangement where the franchisee turns over the daily operation of the business to another party who shares in the profits or losses.
Specifically, the FDD states that any transfer or assignment of the franchisee's interest requires Aira Fitness's prior written consent, along with the fulfillment of other conditions such as offering Aira Fitness a right of first refusal and paying a transfer fee. This requirement extends to changes in ownership percentages within the franchisee entity or changes in general partners.
The Aira Fitness FDD emphasizes that the franchise agreement is based on the franchisee's specific financial qualifications, experience, skills, and managerial qualifications. Therefore, Aira Fitness maintains control over who can operate an Aira Fitness Business to ensure brand standards and business operations are upheld. Attempting to transfer the franchise without consent can result in default or termination of the agreement, or the franchisee may be required to pay a transfer fee equal to two times the standard transfer fee.