Can an Aira Fitness franchisee be relieved of their obligation to pay rent installments due to equipment defects?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rsonal property (together with all attachments, replacements, parts, substitutions, additions, repairs, accessions and accessories, incorporated therein and/or affixed, thereto) (the "Equipment") described in any Schedule to Equipment Lease (a "Schedule") subsequently executed by the parties hereto and incorporating the terms of this Equipment Lease by reference therein (the "Lease").
- (b) The Equipment is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Equipment, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease.
- 3. Term and Rent; Purchase Option. Franchisee shall pay as monthly rent for use of the Equipment the amount described in Paragraph 1(h) above on the 1st day of each month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee's obligation to pay rent for equipment is not explicitly waived due to equipment defects. The franchisee is required to maintain the equipment and repair any defects.
The FDD states that if any rental payment is unpaid for more than five days after the due date, the franchisee will pay on demand an additional late service and/or overhead charge. This charge will be the greater of $100 or 18% of the unpaid amount, but will not exceed the maximum lawful charges. The FDD emphasizes that time is of the essence for the payment of rent.
While the FDD outlines the franchisee's responsibility for equipment maintenance and the consequences of late rental payments, it does not provide a clause that allows for the suspension or waiver of rent payments due to defective equipment. Therefore, a franchisee cannot withhold rent payments due to equipment defects. Instead, they must address the defects according to the maintenance terms outlined in the agreement and continue to make timely rental payments.