Does the Aira Fitness franchisee's duties or obligations materially change if the Franchisor's Affiliate assigns or transfers the lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Assignment by Franchisor's Affiliate. Franchisor's Affiliate may assign or transfer this Lease or any Schedule or Franchisor's Affiliate's interest in the Pod without notice to Franchisee.
Any assignee of Franchisor's Affiliate shall have all of the rights, but none of the obligations, of Franchisor's Affiliate under this Lease and Franchisee agrees that it will not assert against any assignee of Franchisor's Affiliate any defense, counterclaim or offset that Franchisee may have against Franchisor's Affiliate and that upon notice of such assignment or transfer, it will pay all rent and other sums due under this Lease to such assignee or transferee.
Franchisee acknowledges that any assignment or transfer by Franchisor's Affiliate shall not materially change Franchisee's duties or obligations under this Lease nor materially increase the burdens or risks imposed on Franchisee.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the franchisee's duties or obligations under the lease will not materially change if the Franchisor's Affiliate assigns or transfers the lease. The FDD states that the franchisee acknowledges that any assignment or transfer by Franchisor's Affiliate will not materially change the franchisee's duties or obligations under the lease, nor will it materially increase the burdens or risks imposed on the franchisee.
However, upon notice of such assignment or transfer, the Aira Fitness franchisee is obligated to pay all rent and other sums due under the lease to the assignee or transferee. The franchisee also agrees not to assert against any assignee of Franchisor's Affiliate any defense, counterclaim, or offset that the franchisee may have against Franchisor's Affiliate.
This clause protects the assignee's rights and ensures a smooth transition of lease payments. It is a standard practice in franchising to allow for the assignment of leases, and this provision aims to maintain the stability of the lease agreement while providing flexibility for the Franchisor's Affiliate.