For Aira Fitness, what happens if the application for consent to transfer does not indicate whether the franchisee proposes to retain a security interest?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Application for our consent to a transfer and tender of the right of first refusal provided for in Section 12.E must be made by submission of our form of application for consent to transfer, which must be accompanied by the documents (including a copy of the proposed purchase or other transfer agreement) or other required information.
The application must indicate whether you or an Owner proposes to retain a security interest in the property to be transferred.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 FDD, Aira Fitness requires that the application for consent to transfer include whether the franchisee or an owner intends to retain a security interest in the property to be transferred. The FDD does not explicitly state the consequences of omitting this information from the application. However, it does state that the application for consent to a transfer must be made by submitting Aira Fitness' form of application for consent to transfer, which must be accompanied by the documents or other required information.
Given that the application must be made using Aira Fitness' form and include all required information, it is reasonable to infer that an incomplete application could be rejected or delayed. Aira Fitness needs this information to evaluate the proposed transfer and ensure compliance with its transfer policies.
Therefore, a prospective franchisee should clarify with Aira Fitness what the specific consequences are for failing to indicate whether a security interest will be retained in the transfer application. This will help ensure a smooth and compliant transfer process.