What is the Aira Fitness franchisee required to do if they lose possession of the business due to condemnation or casualty to avoid an Event of Default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) if Debtor loses possession or the right of possession of all or a significant part of the Aira Fitness Business through condemnation or casualty and the Aira Fitness Business is not relocated or reopened as required by the Franchise Agreement;
If you need to relocate because of condemnation, destruction, or expiration or cancellation of your lease for reasons other than your breach, we will grant you authority to do so at a site acceptable to us that is within your Designated Area, is reasonably suited for an Aira Fitness Business and does not infringe on the rights of any other AIRA Fitness franchisee, provided that the new Aira Fitness Business is open and operating within sixty (60) days after you discontinue operation at the present Aira Fitness Business, all in accordance with our then-current standards.
In the event your Aira Fitness Business is destroyed or damaged and you repair the Aira Fitness Business at the Authorized Location (rather than relocate the Aira Fitness Business), you must repair and reopen the Aira Fitness Business at the Authorized Location in accordance with our then-current standards for the destroyed or damaged area within twenty (20) days of the date of occurrence of the destruction or damage, or such longer time as we reasonably determine, in our sole judgment, is required given the nature and extent of the damage.
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 loses possession or the right of possession of all or a significant part of the Aira Fitness Business through condemnation or casualty, they must relocate or reopen the business as required by the Franchise Agreement to avoid an Event of Default.
Specifically, if relocation is necessary due to condemnation or destruction, Aira Fitness will grant the franchisee authority to relocate within their Designated Area to a site acceptable to Aira Fitness, provided it is suitable for an Aira Fitness Business and does not infringe on other franchisees' rights. The new Aira Fitness Business must be open and operating within sixty (60) days after discontinuing operation at the previous location, adhering to Aira Fitness's current standards.
Alternatively, if the Aira Fitness Business is destroyed or damaged, the franchisee can repair and reopen the business at the Authorized Location. This must be done within twenty (20) days of the damage occurrence, following Aira Fitness's current standards for the affected area, or within a longer time frame if reasonably determined by Aira Fitness based on the damage extent. Failure to relocate or reopen as required can lead to an Event of Default, potentially resulting in termination of the franchise agreement.