When does the Aira Fitness franchisee assume the risk of loss for equipment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business.
Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must maintain insurance coverage throughout the term of the agreement to cover potential liabilities. This insurance must include special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements.
This requirement means that the franchisee bears the risk of loss for equipment from the moment they begin operating their Aira Fitness business. The franchisee is responsible for securing and maintaining adequate insurance to cover potential losses due to equipment breakdown, damage, or other covered events. The level of coverage must be at the full replacement value of the equipment and improvements.
By requiring this insurance, Aira Fitness shifts the financial burden of potential equipment losses onto the franchisee. While this protects Aira Fitness from direct financial responsibility, it also ensures that the franchisee can quickly recover from unexpected events without disrupting their business operations. Franchisees should carefully evaluate insurance options to ensure they have adequate coverage at a reasonable cost.