Can an Aira Fitness franchisee retain a security interest in the transferred property?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
be paid in full.
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- Reports. You must have provided all required reports to us in accordance with Section 10.
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- Modernization. You must have complied with the provisions of Section 5.F.
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- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
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- Consent to Transfer; General Release.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee may retain a security interest in a transferred Aira Fitness business, but only with the franchisor's prior written consent and under conditions acceptable to Aira Fitness.
Specifically, if the sale is an installment sale, and Aira Fitness consents to the franchisee retaining a security interest or other financial interest in the franchise agreement or the business, the franchisee or owner and the guarantors are obligated to guarantee performance under the agreement. This obligation lasts until the final close of the installment sale or the termination of such interest.
Furthermore, the application for consent to transfer must indicate whether the franchisee or an owner proposes to retain a security interest in the property to be transferred. Any agreement used in connection with a transfer is subject to Aira Fitness's prior written approval, which, according to the FDD, will not be unreasonably withheld.