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What happens if a default caused by force majeure still exists after six months of suspension under the Aira Fitness agreement?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

If a party's default under this Agreement (other than your obligations with respect to insurance and indemnification, to obtain a site and open the Aira Fitness Business within a specified period, and to pay all fees and other amounts due to us and our affiliates under this Agreement and any other agreement between you and us or our affiliates), is caused in whole or in part by a force majeure, such default and any right of the other party to terminate this Agreement for such default is suspended for as long as the default is reasonably caused by such force majeure.

Any suspension is effective only from the delivery of a notice of the force majeure to the other party stating the party's intention to invoke the force majeure.

However, if such suspension continues for longer than six months and the default still exists, either party has the right to terminate this Agreement upon thirty (30) days' notice to the other party.

Events of force majeure are those that cannot be prevented, avoided or removed by the party invoking the force majeure despite the exercise of reasonably diligence, including acts of God, actions of the elements, cyber-attacks, lockouts, strikes, wars, riots, acts of terrorism, civil commotion, and acts of governmental authorities (not including a governmental authority's delaying or refusing to grant building permits, licenses and other permissions and approvals), and except as specifically provided for elsewhere in this Agreement.

Source: Item 23 — **RECEIPTS (FDD pages 59–254)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, if a default (excluding obligations related to insurance, indemnification, site acquisition, opening the business, and payments to Aira Fitness) is caused by a force majeure event, the default and the other party's right to terminate the agreement are suspended for the duration of the force majeure.

However, this suspension is only effective if notice of the force majeure is delivered to the other party, stating the intention to invoke the force majeure. If the suspension lasts longer than six months and the default continues, either Aira Fitness or the franchisee has the right to terminate the agreement.

To terminate the agreement, the terminating party must provide thirty (30) days' notice to the other party. Events considered force majeure are those that cannot be prevented or avoided with reasonable diligence, including acts of God, cyber-attacks, wars, riots, terrorism, civil commotion, and governmental actions (excluding delays in permits and licenses).

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.