Is the Franchisor's Affiliate obligated to dispose of the equipment if they decide not to take possession after an Aira Fitness franchisee's default?

According to the 2025 Aira Fitness Franchise Disclosure Document, if an Aira Fitness franchisee defaults and the Franchisor's Affiliate decides not to take possession of the equipment, the Affiliate is not obligated to dispose of it. The document states that the Affiliate "may, but is not obligated to, dispose of the Equipment by sale or otherwise." This decision is at the Affiliate's "sole discretion and for its own account."

This means that if an Aira Fitness franchisee defaults on their lease or purchase agreement for the fitness equipment, the Affiliate has the option to either take possession of the equipment or not. If they choose not to take possession, they are not required to sell or otherwise dispose of the equipment. This clause provides flexibility to the Affiliate in managing the equipment assets after a franchisee default.

For a prospective Aira Fitness franchisee, this is important to understand because it clarifies the Affiliate's rights and responsibilities regarding the equipment in case of a default. While the Affiliate may choose to dispose of the equipment to recoup losses, they are not legally bound to do so. This could potentially impact the franchisee's liability and the amount they might owe in case of default, as the proceeds from the sale of equipment could offset the debt. Franchisees should clarify with Aira Fitness what factors would influence the Affiliate's decision on whether to repossess/dispose of equipment and how that decision would impact the franchisee's financial obligations.