factual

When would an Aira Fitness franchisee be required to reimburse the franchisor for court costs or attorneys' fees in Washington?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Attorneys' Fees. If the franchise agreement or related agreements require a franchisee to reimburse the franchisor for court costs or expenses, including attorneys' fees, such provision applies only if the franchisor is the prevailing party in any judicial or arbitration proceeding.

Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee in Washington is only required to reimburse Aira Fitness for court costs and attorneys' fees if Aira Fitness is the prevailing party in any judicial or arbitration proceeding. This stipulation is outlined in the addendum to the franchise agreement for the state of Washington.

This means that if an Aira Fitness franchisee in Washington is involved in a legal dispute with the franchisor, they are only liable for covering Aira Fitness's legal expenses if the court or arbitrator rules in favor of Aira Fitness. This provides some protection to the franchisee, as they are not automatically responsible for the franchisor's legal costs regardless of the outcome of the dispute.

This type of clause is not uncommon in franchise agreements, but the specific conditions can vary. Some franchise agreements might require the franchisee to cover legal costs in a wider range of circumstances. Therefore, it is beneficial for a prospective Aira Fitness franchisee in Washington that this addendum limits the franchisee's responsibility for legal fees to situations where Aira Fitness prevails in the legal proceeding.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.