In the franchisee information section for Aira Fitness, what information must be provided for each owner of the franchise entity?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement, you hereby acknowledge and represent to us the following (and agree to notify us immediately in writing upon the occurrence of any act or event that would render any representation incorrect):
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- Entity Ownership. 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.
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- Patriot Act. You represent, warrant and certify that none of you, your affiliates, officers or directors or holders of any equity interest in you is or will be named as a "specially designated national" or "blocked person" (or other similar classification) as designed by the United States Department of The Treasury's Office of Foreign Assets Control (or other applicable governmental agency).
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- Applicable Laws.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, partnership, or similar entity, the franchisee and each of its owners must represent and warrant that their ownership is completely and accurately listed on the Summary Page. Franchisees must provide Aira Fitness with updated ownership information to ensure it remains current, complete, and accurate at all times.
Additionally, the franchisee must represent and warrant that it is duly organized, in good standing, and authorized to conduct business in its state of incorporation and the state where the Aira Fitness Business is located. The franchisee's activities must be confined exclusively to operating the Aira Fitness Business or another Aira Fitness Business under a franchise agreement with Aira Fitness, as reflected in its governing documents. All assets used in the operation of the Aira Fitness Business must be owned or leased by the franchisee.
Furthermore, the franchisee must maintain stop transfer instructions on its records against the transfer of equity securities, except in compliance with the franchise agreement. Any securities issued must bear a legend, in a form satisfactory to Aira Fitness, referencing the transfer restrictions imposed by the agreement. All owners of a franchisee entity must execute a form of undertaking and guarantee, and any person or entity that becomes an Owner after the date of the Agreement must also execute this form. If no individual meets the definition of Owner, all owners designated by Aira Fitness must provide the guarantee.
These requirements ensure that Aira Fitness maintains accurate and up-to-date information about the ownership and operational status of its franchisees. This allows Aira Fitness to enforce the terms of the franchise agreement, manage transfers of ownership, and maintain control over the brand and its operations. Prospective franchisees should be prepared to provide detailed ownership information and ensure compliance with these requirements.