What are the Aira Fitness franchisee's obligations upon termination or non-renewal of the franchise agreement?

The 2025 Aira Fitness Franchise Disclosure Document includes addenda that address franchisee rights upon termination or non-renewal, but these are specific to certain states. For instance, the addendum for Illinois states, "Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act." This means that Illinois franchisees' rights are governed by Illinois state law regarding franchise termination and non-renewal. Similarly, for Hawaii franchisees, the conditions under which the franchise can be terminated and rights upon nonrenewal may be affected by Hawaii Revised Statutes, Section 482E-6.

In North Dakota, the addendum modifies the franchise agreement to state that the execution of a general release upon termination is inapplicable to franchises operating under the North Dakota Franchise Investment Law. Additionally, covenants not to compete after termination are generally unenforceable in North Dakota. Virginia's addendum notes that it is unlawful for Aira Fitness to cancel a franchise without reasonable cause, and if any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause" under Virginia law, that provision may not be enforceable.

These state-specific addenda highlight that Aira Fitness franchisees' obligations and rights upon termination or non-renewal can vary significantly depending on the state in which they operate. Prospective franchisees should carefully review the addendum specific to their state and consult with legal counsel to understand their rights and obligations fully. It is important to note that the FDD does not provide a comprehensive list of obligations applicable to all franchisees across all states, but rather points to state-specific regulations and statutes that may govern these situations.