Does a gift of the Aira Fitness franchise constitute a transfer?

According to the 2025 Aira Fitness Franchise Disclosure Document, a gift of the Aira Fitness franchise is considered a transfer. This means that if a franchisee wishes to gift their franchise to someone else, it will be treated as a transfer under the franchise agreement, triggering certain requirements and conditions.

The FDD specifies that "Any sale (including installment sale), lease, pledge, management agreement, contract for deed, option agreement, assignment, bequest, gift or otherwise, or any arrangement pursuant to which you turn over all or part of the daily operation of the business to a person or entity who shares in the losses or profits of the business in a manner other than as an employee will be considered a transfer for purposes of this Agreement." This broad definition includes a gift, ensuring that Aira Fitness maintains control over who operates its franchises.

As a result, a franchisee gifting their Aira Fitness franchise must comply with the transfer provisions outlined in Section 12 of the franchise agreement. These provisions likely include offering Aira Fitness a right of first refusal, obtaining the franchisor's written consent, paying a transfer fee, and ensuring the transferee meets Aira Fitness's qualifications. The transferee may also need to undergo training and sign a new franchise agreement. This process ensures that any new franchisee, even one receiving the franchise as a gift, meets Aira Fitness's standards and is fully committed to the brand.

It is important for prospective Aira Fitness franchisees to understand that gifting a franchise is not a simple transaction. It involves a formal process with specific requirements to ensure the continued success and consistency of the Aira Fitness brand. Franchisees should carefully review Section 12 of the franchise agreement and consult with Aira Fitness to fully understand the steps and obligations involved in transferring the franchise, even in the form of a gift.