What happens to the amounts payable to the Secured Party upon the occurrence of an Event of Default related to an Aira Fitness business?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2. Remedies. Upon the occurrence of an Event of Default, all amounts payable to Secured Party shall become immediately due and payable and Secured Party shall have all the rights and remedies of a secured party under the Uniform Commercial Code as in effect in the state or states in which the Collateral may be located, including, but not limited to, the right to enter upon the Aira Fitness Business peaceably and remove all Collateral. Secured Party shall give Debtor reasonable notice of the time and place of any public or private sale or other intended disposition of all or any particular Collateral, as the case may be. Debtor agrees that the requirement of reasonable notice shall be met if notice is mailed to Debtor at its address first above written not less than five (5) business days prior to the sale or other disposition. Expenses of retaking, holding, preparing for sale, selling or the like, shall include, without limitation, Secured Party's reasonable attorneys' fees and other legal expenses. Secured Party's rights and remedies, whether pursuant hereto or pursuant to the Illinois Uniform Commercial Code or any other statute or rule of law conferring rights similar to those conferred by the Illinois Uniform Commercial Code, shall be cumulative and not alternative.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if an Event of Default occurs, all amounts payable to the Secured Party become immediately due and payable. The Secured Party, which is Aira Fitness, then has the rights and remedies of a secured party under the Uniform Commercial Code. This means Aira Fitness can take actions to recover the amounts owed.
Specifically, Aira Fitness has the right to enter the Aira Fitness Business location peaceably and remove all collateral. The franchisee, as the Debtor, will receive reasonable notice of any public or private sale or disposition of the collateral. The FDD specifies that a notice mailed to the Debtor's address at least five business days prior to the sale or disposition is considered reasonable notice.
The expenses Aira Fitness incurs in retaking, holding, preparing for sale, and selling the collateral, including reasonable attorney's fees and other legal expenses, are also the responsibility of the franchisee. The rights and remedies available to Aira Fitness are cumulative and do not limit other rights conferred by the Illinois Uniform Commercial Code or any other statute or rule of law.