To whom should an Aira Fitness franchisee pay rent after receiving notice of assignment or transfer of the lease by the Franchisor's Affiliate?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Assignment by Franchisor's Affiliate. Franchisor's Affiliate may assign or transfer this Lease or any Schedule or Franchisor's Affiliate's interest in the Pod without notice to Franchisee.
Any assignee of Franchisor's Affiliate shall have all of the rights, but none of the obligations, of Franchisor's Affiliate under this Lease and Franchisee agrees that it will not assert against any assignee of Franchisor's Affiliate any defense, counterclaim or offset that Franchisee may hav
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if the Franchisor's Affiliate assigns or transfers the lease, the Aira Fitness franchisee must pay rent to the new assignee. The document states that the Franchisor's Affiliate can assign the lease or their interest in the 'Pod' (fitness equipment building) without needing to notify the franchisee.
This means that an Aira Fitness franchisee could be required to direct their rent payments to a different entity than originally contracted with. The new assignee assumes all rights, but not the obligations, of the Franchisor's Affiliate under the lease.
Furthermore, the Aira Fitness franchisee agrees not to assert any defenses, counterclaims, or offsets against the new assignee that they may have had against the Franchisor's Affiliate. This could limit the franchisee's legal recourse in disputes related to the lease after the assignment. It is important for a prospective franchisee to understand their rights and obligations in the event of such an assignment and to seek legal counsel if needed.