Does the Franchisor's Affiliate have sole discretion in deciding whether or not to take possession of the equipment after an Aira Fitness franchisee's 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 Equipment, Franchisor's Affiliate continues to be the owner of the Equipment and may, but is not obligated to, dispose of the Equipment 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, the Franchisor's Affiliate has sole discretion regarding the possession of equipment after a franchisee default. Specifically, the Franchisor's Affiliate can decide whether or not to take possession of the equipment.
If the Franchisor's Affiliate chooses not to take possession, it retains ownership of the equipment and has the option, but not the obligation, to dispose of it through sale or other means. These determinations regarding disposal are also made at the Franchisor Affiliate's sole discretion and for its own account.
In the event of a franchisee default, the Franchisor's Affiliate also has the right to cancel the lease with written notice to the franchisee. Additionally, the Franchisor's Affiliate can declare all sums due for the full term of the lease immediately payable. They can also recover damages from the franchisee, including unpaid rent with interest, the present value of future rentals, costs of repossession and disposal, and the present value of the equipment's residual value.