What happens to the Aira Fitness Fitness Equipment Lease at the end of the initial 3-year term?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
irectly through us.
| Item Financed | Source of Financing | Down Payment | Amount Financed | Term | Interest Rate | Monthly Payment | Prepay Penalty | Security Required | Liability Upon Default |
|---|---|---|---|---|---|---|---|---|---|
| Equipment Lease – Fitness Center (Note 1) | Our Affiliate | $8,472 - $44,359 | $15,014 to $85,806 | 3 years; month to month thereafter (Note 2) | None if paid on timely basis; 18% on past due amounts | $352 - $1,963 (Note 3) | None | Personal Guaranty | Total amount due upon default; loss of franchise; attorney's fees and costs of collection |
| Equipment Lease – Pod (Note 1) | Our Affiliate | $5,078 - $13,930 | $8,712 - $25,870 | 3 years; month to month thereafter (Note 2) | None if paid on timely basis; 18% on past due amounts | $207 - $597 | None | Personal Guaranty | Total amount due upon default; loss of franchise; attorney's fees and costs of collection |
| Pod Package Lease (Note 4) | Our Affiliate | $12,000 | $40,000 | 3 years; month to month thereafter (Note 5) | None if paid on timely basis; 18% on past due amounts | $600 | None | Personal Guaranty | Total amount due upon default; loss of franchise; attorney's fees and costs of collection |
Notes:
- (1) You must purchase or lease the Initial Fitness Equipment Package fromus. You can pay the purchase price for the initial fitness equipment in full or we will lease you the initial fitness equipment. You will sign the standard formInitialFitnessEquipmentPurchase Agreement alongwith the PersonalGuaranty that is attached to this Disclosure Document as Exhibit F or you will sign the standard form Fitness Equipment Lease along with the Personal Guaranty that is attached to this Disclosure Document as Exhibit G. We do not require any partieswho do not have ownership interest in the franchise to sign the Personal Guaranty. Under the Fitness Equipment Lease, you waive (i) rights and remedies under Sections 2A-508 through 12A-522 of the Uniform Commercial Code (UCC); (ii) rights to require our affiliate to mitigate damages; and (iii) the right to trial by jury. Additionally, under the Fitness Equipment Lease, the statute of limitations for breach of warranty is limited to 1 year.
Source: Item 10 — **FINANCING (FDD pages 36–38)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Fitness Equipment Lease continues on a month-to-month basis after the initial 3-year term. However, this is conditional, as Aira Fitness may require certain pieces of equipment to be replaced if they no longer meet the system's standards. Alternatively, the franchisee can request a replacement. At the end of the 3-year term, franchisees also have the option to purchase the fitness equipment in the Initial Fitness Equipment Package for 50% of the Manufacturer's Suggested Retail Price (MSRP).
For franchisees leasing equipment for a Fitness Center, monthly payments range from $352 to $1,963, while those leasing for a Pod pay between $207 and $597 per month. These payments are equivalent to 1.5% of the MSRP for the Initial Fitness Equipment Package. The franchisee is also responsible for a down payment ranging from $8,472 to $44,359 for a Fitness Center or $5,078 to $13,930 for a Pod. The amount financed ranges from $15,014 to $85,806 for a Fitness Center and $8,712 to $25,870 for a Pod.
It is important to note that under the Fitness Equipment Lease, franchisees waive certain rights, including those under Sections 2A-508 through 12A-522 of the Uniform Commercial Code (UCC), the right to require Aira Fitness's affiliate to mitigate damages, and the right to a jury trial. Additionally, the statute of limitations for breach of warranty is limited to 1 year. A personal guaranty is required for the lease, and default can result in the total amount due, loss of the franchise, and responsibility for attorney's fees and collection costs.
Prospective franchisees should carefully consider these terms and conditions, particularly the waivers and limitations, before entering into a Fitness Equipment Lease with Aira Fitness. Understanding the costs, obligations, and potential liabilities associated with the lease is crucial for making an informed decision.