What must an Aira Fitness franchisee's legal representative do to succeed to the franchise interest in case of insolvency?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of your insolvency or the filing of any petition by or against you under any provisions of any bankruptcy or insolvency law, if your legal representative, successor, receiver or trustee desires to succeed to your interest in this Agreement or the business conducted hereunder, such person first must notify us, tender the right of first refusal provided for in Section 12.E, and if we do not exercise such right, must apply for and obtain our consent to the transfer, pay the transfer fee provided for in Section 12.C, if applicable, and satisfy the transfer conditions described in Section 12.C. In addition, you or the transferee must pay the attorneys' fees and costs that we incur in any bankruptcy or insolvency proceeding pertaining to you.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if an Aira Fitness franchisee becomes insolvent and their legal representative, successor, receiver, or trustee wishes to continue the franchise, they must take specific steps. First, they must notify Aira Fitness of their intent. Next, they must offer Aira Fitness the right of first refusal to acquire the franchise, as detailed in Section 12.E of the franchise agreement.
If Aira Fitness declines to exercise its right of first refusal, the legal representative must then apply for and obtain Aira Fitness's consent to the transfer. They will also need to pay the applicable transfer fee, as outlined in Section 12.C, and fulfill all other transfer conditions also described in Section 12.C.
Furthermore, the franchisee or the party seeking the transfer is responsible for covering all attorneys' fees and costs that Aira Fitness incurs during any bankruptcy or insolvency proceedings related to the franchisee. This ensures that Aira Fitness is not financially burdened by the franchisee's insolvency. These stipulations are in place to protect Aira Fitness's interests and ensure that any transfer of the franchise meets their standards and requirements.