Can the Aira Fitness franchisor terminate the Franchise Agreement without cause?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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."
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the franchisor's ability to terminate the franchise agreement without reasonable cause is restricted in Virginia. Specifically, the Virginia Retail Franchising Act stipulates that it is unlawful for a franchisor to cancel a franchise without reasonable cause.
This means that if any clause within the Aira Fitness franchise agreement outlines grounds for default or termination that do not align with the definition of "reasonable cause" under Virginia law, that particular clause may not be enforceable within the Commonwealth of Virginia.
For prospective Aira Fitness franchisees in Virginia, this addendum provides an additional layer of protection, ensuring that the franchisor cannot terminate the agreement based on arbitrary or unsubstantiated reasons. It is important for franchisees to understand what constitutes "reasonable cause" under Virginia law to fully realize their rights and protections under the franchise agreement.