What does an Aira Fitness franchisee that is a corporation warrant regarding the consistency of the lease with their corporate documents?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company, partnership or similar entity, you and each of your Owners represents and warrants that your ownership is completely and accurately listed on the Summary Page and that you will provide us with updated ownership information so that at all times the ownership information is current, complete and accurate.
In addition, you represent and warrant that: (i) you are duly organized, in good standing and authorized to conduct business in your state of incorporation and the state
where the Aira Fitness Business is located; **(**ii) you will confine your activities, and your governing documents will at all times provide that your activities are confined, exclusively to operating the Aira Fitness Business or another Aira Fitness Business under a franchise agreement with us; (iii) all assets used in the operation of the Aira Fitness Business are owned or leased by you; and (iv) you have and will maintain stop transfer instructions on your records against the transfer of equity securities except in compliance with this Agreement and will only issue securities upon the face of which bear a legend, in a form satisfactory to us, which references the transfer restrictions imposed by this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, partnership, or similar entity, they must ensure that their governing documents confine their activities exclusively to operating the Aira Fitness Business or another Aira Fitness Business under a franchise agreement with Aira Fitness. This means the corporate documents must explicitly state that the entity's sole purpose is to run the Aira Fitness franchise.
This requirement ensures that the franchisee's business operations remain focused solely on the Aira Fitness franchise, preventing any conflicts of interest or diversion of resources to other ventures. It also allows Aira Fitness to maintain control over the brand and ensure consistent operation across all franchise locations.
Furthermore, the franchisee must warrant that all assets used in the operation of the Aira Fitness Business are either owned or leased by the franchisee entity. This provision clarifies that the franchisee has secured the necessary rights to use the business premises and equipment, whether through ownership or a valid lease agreement. This protects Aira Fitness by ensuring the franchisee has a legitimate right to operate the business at the specified location and with the necessary resources.