Is an Aira Fitness franchisee allowed to engage in conduct that would harm Aira Fitness' rights in the Marks after the franchise agreement ends?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Reversion of Rights; Discontinuation of Trademark Use. All of your rights to the use of the Marks and all other rights and licenses granted in this Agreement and the right and license to conduct business under the Marks at the Authorized Location will revert to us without further act or deed of any party. All of your right, title and interest in, to and under this Agreement will become our property. You must immediately comply with the postterm non-compete obligations under Section 11.D, cease all use and display of the Marks and of any proprietary material (including the Manual) and of all or any portion of promotional materials furnished or approved by us, assign all right, title and interest in the telephone numbers for the Aira Fitness Business and cancel or assign, at our option, any assumed name rights or equivalent registrations filed with authorities. You must pay all sums due to us, our affiliates or designees and all sums you owe to third parties that have been guaranteed by us or any of our affiliates. You must immediately return to us, at your expense, all copies of the Manuals then in your possession or control or previously disseminated to your employees and continue to comply with the confidentiality provisions of Section 6.I. You must promptly at your expense and subject to Section 15.B, remove or obliterate all Aira Fitness Business signage, displays or other materials in your possession at the Authorized Location or elsewhere that bear any of the Marks or names or material confusingly similar to the Marks and so alter the appearance of the Aira Fitness Business as to differentiate the Aira Fitness Business unmistakably from duly licensed Aira Fitness Businesses identified by the Marks. If, however, you refuse to comply with the provisions of the preceding sentence within thirty (30) days, we have the right to enter the Authorized Location and remove all Aira Fitness Business signage, displays or other materials in your possession at the Authorized Location or elsewhere that bear any of the Marks or names or material confusingly similar to the Marks, and you must reimburse us for our costs incurred. You are responsible for reimbursing members for all pre-paid services not rendered. Notwithstanding the foregoing, in the event of expiration or termination of this Agreement, you will remain liable for your obligations pursuant to this Agreement or any other agreement between you and us or our affiliates that expressly or by their nature survive the expiration or termination of this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, all rights to use Aira Fitness's Marks revert back to Aira Fitness. The franchisee must immediately stop using and displaying the Marks and any proprietary material, including manuals and promotional materials. The franchisee also needs to assign all rights to the Aira Fitness Business's telephone numbers and cancel or assign any assumed name rights filed with authorities, at Aira Fitness's option.
Furthermore, the franchisee is obligated, at their own expense and within thirty days, to remove or obliterate all Aira Fitness Business signage, displays, or other materials bearing any of the Marks. They must also alter the appearance of the business to clearly differentiate it from licensed Aira Fitness Businesses. If the franchisee refuses to comply within this period, Aira Fitness has the right to enter the location and remove these items at the franchisee's expense.
In practical terms, this means that upon termination or expiration, a former Aira Fitness franchisee cannot continue to operate a similar business using the Aira Fitness brand or any confusingly similar branding. They must take active steps to remove all traces of the Aira Fitness identity from their former location to avoid infringing on Aira Fitness's trademark rights. Failure to do so could result in Aira Fitness taking action to protect its brand and recovering costs from the former franchisee.