What does an Aira Fitness franchisee represent regarding the consistency of the lease with their Certificate of Incorporation or By-Laws if they are a corporation?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Aira Fitness Franchise Disclosure Document, if the franchisee is a corporation, they must ensure that their activities are confined exclusively to operating the Aira Fitness Business or another Aira Fitness Business under a franchise agreement with Aira Fitness. The franchisee's governing documents must also reflect this restriction at all times. This means the franchisee cannot engage in other business ventures outside of Aira Fitness under the same corporate entity.
Furthermore, the franchisee represents that all assets used in the operation of the Aira Fitness Business are either owned or leased by the corporation. This implies that the lease for the Aira Fitness Business premises must be held in the name of the corporate entity, ensuring that the business's assets and operational location are directly tied to the franchisee.
These requirements ensure that the franchisee is fully committed to the Aira Fitness brand and that the business operates within the scope defined by the franchise agreement. It also protects Aira Fitness by preventing franchisees from diverting resources or engaging in conflicting business activities under the same corporate structure.