Is the Franchisor's Affiliate required to dispose of the equipment for the benefit of the Aira Fitness franchisee after default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Default: If Franchisee does not meet its payment and other obligations under this Agreement, then Franchisee will be in default and Franchisor's Affiliate will be entitled to pursue all legal and equitable remedies. Franchisee shall be responsible for all costs of collection and enforcement incurred by Franchisor's Affiliate , including reasonable attorneys' fees.
release or other disposition of the Equipment including reasonable attorneys' fees and costs incurred in connection with or otherwise resulting from the Franchisee's default; (iv) present value of the agreed upon or estimated residual value of the Equipment (as of the expiration of this Lease or any renewal thereof) discounted at a rate equal to the discount rate of the Federal Reserve Bank of Chicago as of the date of Default; and (v) any indemnity, if then determinable, plus interest at eighteen percent (18%) per annum, LESS the amount received by Franchisor's Affiliate upon such public or private sale or re-lease of such items of Equipment, if any;
No remedy referred to in this Paragraph is intended to be exclusive, but shall be cumulative and in addition to any other remedy referred to above or otherwise available to Franchisor's Affiliate at law or in equity.
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 is not required to dispose of equipment for the benefit of the franchisee after default. Instead, the document outlines the affiliate's rights and remedies in the event of a franchisee default.
Specifically, if a franchisee defaults on their obligations, Aira Fitness's affiliate is entitled to pursue all legal and equitable remedies, including recovering costs of collection and enforcement, such as reasonable attorney's fees. The affiliate can also recover costs resulting from the franchisee's default, the present value of the equipment's residual value discounted at the Federal Reserve Bank of Chicago's discount rate, and any indemnity plus interest at 18% per annum, less any amounts received from the sale or re-lease of the equipment.
The Aira Fitness FDD also states that no remedy is intended to be exclusive, but cumulative and in addition to any other remedy available to Franchisor's Affiliate at law or in equity. This means the affiliate has several options for recourse, and the franchisee does not have a right to demand disposal of equipment for their benefit.