What happens to the Aira Fitness Fitness Equipment Lease Agreement upon expiration of the initial term if the equipment is not returned?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you choose to lease the fitness equipment, at the end of each three year period, you must return the old equipment to the designated or approved supplier of the fitness equipment or otherwise per the terms of the equipment lease, which designated or approved supplier may be us or our affiliate.
You must then enter into a purchase agreement or lease for replacement equipment with a designated or approved, which may be us or our affiliate.
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 chooses to lease fitness equipment, they must return the old equipment to the designated supplier at the end of each three-year period, as per the terms of the equipment lease. The designated supplier may be Aira Fitness or its affiliate. Following the return, the franchisee is required to enter into a new purchase agreement or lease for replacement equipment with a designated or approved supplier, which again may be Aira Fitness or its affiliate.
The FDD does not explicitly state the consequences of failing to return the equipment at the end of the lease term. It only outlines the requirement to return the equipment and enter into a new agreement.
Therefore, a prospective Aira Fitness franchisee should clarify with Aira Fitness what the specific penalties or procedures are if the equipment is not returned as required by the lease agreement. This could include potential financial penalties, legal action, or other repercussions for non-compliance with the lease terms.