What are the franchisee's obligations to Aira Fitness upon termination or non-renewal of the Multi-Unit Development Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
"The execution of a general release upon renewal, assignment or termination shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law."
"Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota."
For Hawaii franchisees, the conditions under which the franchise can be terminated and rights upon nonrenewal may be affected
The Wisconsin Fair Dealership Law, Chapter 135 of the Wisconsin Statutes supersedes any provisions of the Franchise Contract or Agreement if such provisions are in conflict with that law.
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the obligations of a franchisee upon termination or non-renewal of the Multi-Unit Development Agreement are not explicitly detailed in the provided excerpts, but there are some state-specific addenda that address franchisee rights in relation to termination and non-renewal.
For Illinois franchisees, the addendum 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 law will govern the franchisee's rights upon termination or non-renewal, and those rights are detailed in the specified sections of the Illinois Franchise Disclosure Act.
For franchisees in North Dakota, the addendum notes that "The execution of a general release upon renewal, assignment or termination shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law" and "Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota.". This suggests that franchisees in North Dakota may not be bound by general releases or non-compete agreements upon termination or non-renewal.
For Hawaii franchisees, "the conditions under which the franchise can be terminated and rights upon nonrenewal may be affected".
To fully understand a franchisee's obligations upon termination or non-renewal, it is essential to review the specific sections of the Illinois Franchise Disclosure Act (sections 19 and 20) and consult with legal counsel to understand the implications of state laws, particularly in North Dakota, Hawaii and Wisconsin, where state laws may supersede the franchise agreement.