Does the Aira Fitness franchisor have to mediate claims related to specific performance or injunctive relief?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision. You further agree to waive any claims for damages in the event there is a later determination that an injunction or specific performance order was issued improperly.
- 12.3 Arbitration. Except for controversies, disputes or claims related to or based on Developer's use of the Marks or Confidential Information, Developer's compliance with its noncompetition obligations, all controversies, disputes or claims between Franchisor, its affiliates, and their respective owners, officers, directors, agents, employees and attorneys, and Developer (its affiliates and owners and guarantors, if applicable), arising out of or related to this Agreement or any other agreement between the parties; the parties' rights and obligations under this Agreement; Franchisor's relationship with Developer or the obligations by and between the parties; or the validity of this Agreement or any other agreement between Franchisor and Developer or any provision of such agreements, will be submitted to binding Arbitration administered by the American Arbitration Association ("AAA") in accordance with the AAA's then-current Commercial Arbitration Rules. The arbitration hearing shall take place in McHenry County, Illinois, before a single arbitrator. Any party who fails or refuses to submit any dispute to binding arbitration following a lawful demand by the opposing party shall bear all costs and expenses incurred by the opposing party in compelling arbitration. The parties shall have thirty days after the service of a Statement of Claim and demand for arbitration to agree on a single arbitrator.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, disputes regarding a franchisee's use of the Aira Fitness marks or confidential information, or a franchisee's compliance with non-competition obligations, are not subject to mandatory arbitration. Aira Fitness can seek injunctive relief or specific performance in court to enforce these provisions.
If Aira Fitness obtains an injunction or order of specific performance against a franchisee, the franchisee is responsible for covering Aira Fitness's costs. These costs include reasonable attorneys' fees, expert witness fees, investigation costs, court costs, litigation expenses, and travel and living expenses. The franchisee also waives any claims for damages if the injunction or specific performance order is later determined to have been issued improperly.
Item 13A states that any dispute between the franchisee and Aira Fitness must be submitted to binding arbitration under the Federal Arbitration Act, with arbitration taking place in the Chicago, Illinois metropolitan area. However, this is qualified by the exceptions noted above, where Aira Fitness can pursue injunctive relief or specific performance directly without mandatory arbitration.