For Aira Fitness franchises in Virginia, what effect does an acknowledgement signed by the franchisee have regarding claims under franchise law?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP]
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO DISCLOSURE DOCUMENT FOR THE COMMONWEALTH OF VIRGINIA
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Aira Fitness Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following is added to Item 5:
The Virginial State Corporate Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owned by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement.
The following statements are added to Item 17.h.:
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause, "as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO THE FRANCHISE AGREEMENT FOR THE COMMONWEATLH OF VIRGINIA
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, an addendum specific to Virginia addresses the effect of franchisee acknowledgements on claims under franchise law. The addendum acknowledges restrictions outlined in Section 13.1-564 of the Virginia Retail Franchising Act. This indicates that Virginia law places certain limitations on how franchise agreements can operate, particularly concerning the rights of franchisees.
Specifically, the Aira Fitness addendum states that the franchise disclosure document for use in Virginia is amended to include additional disclosures in Item 5 and Item 17.h. Item 17.h addresses franchise termination, stating that under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for Aira Fitness to cancel a franchise without reasonable cause. The addendum clarifies that if any grounds for default or termination stated in the franchise agreement do not constitute "reasonable cause" as defined by Virginia law, that provision may not be enforceable.
This means that Aira Fitness franchisees in Virginia have certain protections against termination without reasonable cause, regardless of what the standard franchise agreement might say. The Virginia Retail Franchising Act takes precedence, and any termination clauses that conflict with the Act may be deemed unenforceable. This is a significant protection for franchisees, ensuring that Aira Fitness must have a legitimate and legally sound reason to terminate a franchise agreement.
In practical terms, a prospective Aira Fitness franchisee in Virginia should carefully review the franchise agreement and the Virginia Retail Franchising Act to understand their rights and protections. They should also consult with an attorney to ensure that the agreement complies with Virginia law and that they are fully aware of the conditions under which their franchise can be terminated. This addendum highlights the importance of state-specific franchise laws and how they can modify the terms of a standard franchise agreement to protect franchisees.