Does the Aira Fitness Franchisor's Affiliate have to cancel the lease upon an Event of Default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
se obligations incurred after the effective date of the assignment.
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- No Lien. Landlord agrees not to require a security interest or lien on any of the personal property of the Tenant located on the Premises used for the operation of the Aira Fitness franchise.
4. Default and Notice.
- (a) In the event there is a default or violation by Tenant under the terms of the Lease, Landlord agrees to give Tenant and Aira Fitness written notice of such default or violation within a reasonable time after Landlord knows of its occurrence. Landlord agrees to provide Aira Fitness the written notice of default as written and on the same day Landlord gives it to Tenant. Although Aira Fitness is under no obligation to cure the default, Aira Fitness will notify Landlord it intends to cure the default and unilaterally assume Tenant's interest in the lease as provided in Paragraph 3(c). Aira Fitness will have an additional fifteen (15) days from the expiration of Tenant's cure period in which to cure the default or violation.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the franchisor's affiliate is not obligated to cancel the lease upon an event of default by the tenant (franchisee). However, the landlord is required to provide written notice to both the tenant and Aira Fitness of any default or violation under the lease terms. Aira Fitness then has the option, but not the obligation, to cure the default and assume the tenant's interest in the lease.
Specifically, Aira Fitness has an additional fifteen (15) days from the expiration of the franchisee's cure period to address the default or violation. This arrangement allows Aira Fitness to protect its brand and system by stepping in to maintain control of the location if a franchisee is struggling or non-compliant.
This clause in the lease addendum ensures that Aira Fitness has the ability to maintain consistent operations and standards across its franchise network, even if individual franchisees face difficulties. However, it's important to note that Aira Fitness is not obligated to take on this responsibility, and the landlord cannot hold Aira Fitness or its affiliates liable for the franchisee's obligations under the lease.