Can an Aira Fitness franchisee retain a security interest in the transferred property without written consent?

According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees are not allowed to retain or create a security interest in transferred property without the prior written consent of Aira Fitness. This condition is in place to ensure that Aira Fitness maintains control over the transfer process and that any potential security interests are acceptable to them.

This requirement means that if a franchisee wishes to sell their Aira Fitness business and finance the sale by retaining a security interest in the business or its assets, they must first obtain written approval from Aira Fitness. This approval is not guaranteed and is subject to conditions that Aira Fitness finds acceptable. The application for consent must indicate whether the franchisee proposes to retain a security interest in the property to be transferred.

The franchisor's right to deny a security interest provides them with significant leverage over the transfer. Aira Fitness can ensure that any retained security interest does not conflict with their interests or the interests of the brand. This requirement is not uncommon in franchising, as franchisors often want to maintain control over the financial structure of their franchisees' businesses to protect the overall stability and reputation of the franchise system. Prospective franchisees should discuss potential transfer scenarios with Aira Fitness to understand what conditions might be imposed on any retained security interest.