Can an Aira Fitness franchisee encumber any item of equipment without the Franchisor's Affiliate's consent?

According to the 2025 Aira Fitness Franchise Disclosure Document, a franchisee's ability to encumber equipment is restricted. Specifically, as long as any payment obligations remain outstanding, the franchisee cannot assign the agreement or sell or transfer the equipment without the prior written consent of Aira Fitness's affiliate. This provision is outlined within the receipts section of the agreement.

This restriction has significant implications for a prospective Aira Fitness franchisee. It means that during the period they are still making payments for the equipment, they do not have the freedom to sell, transfer, or assign the equipment without getting permission from Pure Gym Equipment, LLC, which is Aira Fitness's affiliate. This could limit the franchisee's flexibility in managing their assets or exiting the business if they face financial difficulties or wish to pursue other opportunities.

This type of restriction is not uncommon in franchising, particularly when the franchisor or its affiliate finances the equipment. It protects the financial interests of the franchisor or its affiliate by ensuring that the equipment cannot be sold or transferred without their knowledge or consent until all outstanding payments are made. Prospective franchisees should carefully consider this restriction and its potential impact on their business operations and exit strategy before entering into a franchise agreement with Aira Fitness.