Can Aira Fitness's Franchisor's Affiliate repossess equipment without notice to the franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Without notice to Franchisee, repossess the Equipment wherever found, with or without legal process, and for this purpose Franchisor's Affiliate and/or its agents may enter upon any premises of or under the control or jurisdiction of Franchisee or any agent of Franchisee, without liability for suit, action or other proceeding by Franchisee (any damages occasioned by such repossession being hereby expressly waived by Franchisee) and remove the Equipment therefrom; Franchisee further agrees on demand, to assemble the Equipment and make it available to Franchisor's Affiliate at a place to be designated by Franchisor's Affiliate which is reasonably convenient to Franchisor's Affiliate;
(f) In its sole discretion, re-lease or sell any or all of the Equipment at a public or private sale on such terms and notice as Franchisor's Affiliate shall deem reasonable (such sale may, at Franchisor's Affiliate's sole option, be conducted at Franchisee's premises), and recover from Franchisee damages, not as a penalty, but herein liquidated for all purposes and in an amount equal to the sum of (i) any accrued and all unpaid rent as of the later of (A) the date of default or (B) the date that Franchisor's Affiliate has obtained possession of the Equipment or such other date as Franchisee has made an effective tender of possession of the Equipment back to Franchisor's Affiliate ("Default Date"), plus interest at the rate of eighteen percent (18%) per annum; (ii) the present value of all future rentals reserved in the Lease and contracted to be paid over the unexpired term of the Lease discounted at a rate equal to the discount rate of the Federal Reserve Bank of Chicago as of the Default Date plus interest on said sum at the rate of eighteen percent (18%) per annum until paid; (iii) all commercially reasonable costs and expenses incurred by Franchisor's Affiliate in any repossession, recovery, storage, repair, sale,
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the Franchisor's Affiliate has the right to repossess equipment from a franchisee without prior notice under certain conditions. Specifically, if the franchisee defaults on their obligations, the Franchisor's Affiliate can repossess the equipment without notice and without legal process.
To do so, the Franchisor's Affiliate or its agents are permitted to enter the franchisee's premises or any location under the franchisee's control to remove the equipment. The franchisee explicitly waives any right to sue or take action against the Franchisor's Affiliate for damages resulting from such repossession. The franchisee is also obligated to assemble the equipment and make it available to the Franchisor's Affiliate at a reasonably convenient location upon demand.
Following repossession, the Franchisor's Affiliate has the discretion to re-lease or sell the equipment through a public or private sale, determining the terms and notice as they deem reasonable. The franchisee is liable for damages equal to the sum of accrued unpaid rent plus interest at 18% per annum, the present value of all future rentals discounted at the Federal Reserve Bank of Chicago's discount rate plus interest at 18% per annum, and all commercially reasonable costs incurred during repossession, recovery, storage, repair, and sale.