Can the Franchisor's Affiliate make determinations regarding the disposal of the Pod in its sole discretion after an Aira Fitness franchisee's Event of Default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If Franchisor's Affiliate decides, in its sole discretion, not to take possession of the Pod, Franchisor's Affiliate continues to be the owner of the Pod and may, but is not obligated to, dispose of the Pod by sale or otherwise, all of which determinations may be made by Franchisor's Affiliate in its sole discretion and for its own account;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, after an Event of Default, Franchisor's Affiliate has the power to make certain determinations regarding the disposal of the Pod. Specifically, if Franchisor's Affiliate decides not to take possession of the Pod, it may dispose of the Pod by sale or otherwise.
These determinations regarding disposal can be made in Franchisor's Affiliate's sole discretion and for its own account. This means Aira Fitness franchisees have very little say in how the Pod is handled after a default.
This clause is significant for prospective Aira Fitness franchisees as it highlights the control Franchisor's Affiliate maintains over the Pod and its disposal, even after the franchisee has defaulted. Franchisees should carefully consider the implications of this clause and understand the potential financial consequences of an Event of Default, including the loss of the Pod and the discretion Franchisor's Affiliate has in disposing of it.