Can the Franchisor's Affiliate assign or transfer the Aira Fitness lease without notifying the franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Assignment by Franchisor's Affiliate. Franchisor's Affiliate may assign or transfer this Lease or any Schedule or Franchisor's Affiliate's interest in the Pod without notice to Franchisee.
Any assignee of Franchisor's Affiliate shall have all of the rights, but none of the obligations, of Franchisor's Affiliate under this Lease and Franchisee agrees that it will not assert against any assignee of Franchisor's Affiliate any defense, counterclaim or offset that Franchisee may have against Franchisor's Affiliate and that upon notice of such assignment or transfer, it will pay all rent and other sums due under this Lease to such assignee or transferee.
Franchisee acknowledges that any assignment or transfer by Franchisor's Affiliate shall not materially change Franchisee's duties or obligations under this Lease nor materially increase the burdens or risks imposed on Franchisee.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the Franchisor's Affiliate has the right to assign or transfer the lease, or any part of their interest in the Pod, without providing notice to the franchisee. This means that Aira Fitness franchisees may find their lease agreement transferred to a new entity without prior warning.
Any entity that receives the lease from the Franchisor's Affiliate will have all the rights previously held by the affiliate, but none of the obligations. The franchisee is obligated to pay rent and other sums due under the lease to this new entity upon notification of the assignment or transfer. The franchisee also agrees not to assert any defenses, counterclaims, or offsets against the new assignee that they may have had against the Franchisor's Affiliate.
This clause also states that such an assignment or transfer by the Franchisor's Affiliate should not materially change the franchisee's duties or obligations under the lease, nor should it significantly increase the burdens or risks imposed on the franchisee. While the franchisee is bound to accept the new assignee and continue payments, the terms of the original lease agreement are intended to remain substantially the same.