Can the Franchisor's Affiliate cancel the lease agreement upon an event of default by an Aira Fitness franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
: (i) RECEIPT OF THE PURCHASED EQUIPMENT, (ii) THAT FRANCHISEE HAS HAD THE OPPORTUNITY TO INSPECT THE CONDITION OF THE PURCHASED EQUIPMENT, AND (iii) FRANCHISEE ACCEPTS THE CONDITION OF THE EQUIPMENT AS DELIVERED ON:
| Date: | |--------------| | Franchisee: | | By: | | (Print Name) |
EXHIBIT 1 TO PURCHASE AGREEMENT
Pod Specifications
EXHIBIT I POD PACKAGE LEASE
POD LEASE AGREEMENT
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's |
|---|---|---|
| WITNESSETH | ||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the relationship between the franchisee (Tenant), the landlord, and Aira Fitness is governed by a lease addendum. This addendum ensures that Aira Fitness has certain rights and protections related to the leased premises.
The addendum stipulates that if the franchisee defaults or violates the lease terms, the landlord must provide written notice to both the franchisee and Aira Fitness within a reasonable time frame after becoming aware of the default. This notification allows Aira Fitness to be informed of any issues and potentially take action to protect its interests.
The FDD also states that the franchisee must provide a guaranty, ensuring the franchisee's full performance under the lease agreement. This guaranty serves as a condition of the Franchisor's Affiliate's obligations under the lease agreement.
The 2025 Aira Fitness FDD does not explicitly state that the Franchisor's Affiliate can cancel the lease agreement upon an event of default by the Aira Fitness franchisee. The document describes the conditions under which Aira Fitness can assume the lease or receive notice of default, but it does not detail the Franchisor's Affiliate's specific rights regarding cancellation in case of franchisee default. A prospective franchisee should seek clarification from Aira Fitness regarding the specific terms and conditions under which the lease can be canceled and the rights of the Franchisor's Affiliate in such situations.