Can the Franchisor's Affiliate cancel the Aira Fitness 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.
- (b) All notices to Aira Fitness must be sent by registered or certified mail, postage prepaid, to the following address:
Aira Fitness Franchising LLC.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, in the event of a default or violation by the tenant (franchisee) under the terms of the lease, the landlord is required to provide written notice to both the tenant and Aira Fitness. While Aira Fitness is not obligated to cure the default, they have the option to notify the landlord of their intent to cure the default and unilaterally assume the tenant's interest in the lease. Aira Fitness is granted an additional fifteen days from the expiration of the tenant's cure period to address the default or violation.
Upon the tenant's default and failure to cure under either the lease or the Franchise Agreement, Aira Fitness retains the right, but not the obligation, to unilaterally assume the tenant's interest in the lease. This provision ensures that Aira Fitness has a mechanism to maintain control over the location and operation of the franchise, even if the franchisee fails to meet their obligations.
However, the FDD states that nothing contained in the addendum makes Aira Fitness or its affiliates a party or guarantor to the lease, and does not create any liability or obligation of Aira Fitness or its affiliates. The document does not explicitly state that Aira Fitness's affiliate has the right to cancel the Aira Fitness lease upon an Event of Default. A prospective franchisee should seek clarification from Aira Fitness regarding the specific circumstances under which the lease can be canceled and the role of Aira Fitness's affiliates in such a scenario.