Does the Franchisor's Affiliate have sole discretion in determining the disposal of 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, if a franchisee defaults on their lease agreement, the Franchisor's Affiliate has the sole discretion regarding the disposal of the equipment. Specifically, the Franchisor's Affiliate can decide not to take possession of the equipment, and in that case, it continues to own the equipment.
The Franchisor's Affiliate then has the right, but not the obligation, to dispose of the equipment through sale or other means. These determinations regarding disposal can be made by the Franchisor's Affiliate at its sole discretion and for its own account.
This means that an Aira Fitness franchisee who defaults on their lease has no control over how the equipment is sold or otherwise disposed of, and the Franchisor's Affiliate benefits from any proceeds. The franchisee should be aware that the affiliate is not obligated to get the best possible price for the equipment, as they can dispose of it at their sole discretion.