Is the general release required for Aira Fitness franchise renewal consistent with all state laws regulating franchising?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a Franchise Agreement dated by and between Aira Fitness Franchising, LLC and (Franchisee) to amend said Agreement as follows:
- Section 4.B. of the Franchise Agreement on "Renewal Term and Conditions of Renewal" and Section 12.C. of the Franchise Agreement on "Conditions of Transfer" are amended by the addition of the following language to the original language that appears therein:
"The execution of a general release upon renewal, assignment or termination shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law."
- Section 11.D.3. of the Franchise Agreement on "Non-Compete Covenants – After Termination" is amended by the addition of the following language to the original language that appears therein:
"Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota."
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the requirement of a general release upon renewal, assignment, or termination of the franchise agreement is not applicable to franchises operating under the North Dakota Franchise Investment Law. This means that Aira Fitness franchisees in North Dakota cannot be forced to sign a general release to waive their rights under that state's franchise law when renewing, assigning, or terminating their franchise agreement. This is outlined in the addendum to both the Franchise Agreement and the Multi-Unit Development Agreement for the state of North Dakota.
For Aira Fitness franchisees in New York, the Franchise Agreement is amended to ensure that all rights and causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York remain in force. This addendum specifically states that the non-waiver provisions of GBL Sections 687.4 and 687.5 must be satisfied, meaning franchisees cannot waive their rights under New York franchise law. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on behalf of the franchisor.
In Illinois, any condition, stipulation, or provision that attempts to bind a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. This ensures that Aira Fitness franchisees in Illinois are protected by state law and cannot be forced to waive their rights. Similarly, in Rhode Island, the Franchise Disclosure Document is amended to state that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void with respect to claims enforceable under the Rhode Island Franchise Investment Act.
For franchisees in Virginia, the Aira Fitness FDD is amended to comply with the Virginia Retail Franchising Act, which states that it is unlawful for a franchisor to cancel a franchise without reasonable cause. Therefore, any grounds for default or termination stated in the franchise agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable. These addenda demonstrate that Aira Fitness takes into account state-specific franchise laws and adjusts its agreements accordingly to ensure compliance and protect franchisees' rights.