What happens if an Aira Fitness developer or other entity owned by the Owners are in default under any individual Franchise Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
or directors verbally or physically assaults or abuses any officer, director, member, manager or employee of Franchisor or any of its Affiliates, or any Aira Fitnessfranchisee or employees of franchisees, after receiving a verbal or written warning against this conduct from Franchisor regarding this conduct.
- 7.3 If you (i) fail to meet any of the deadlines set forth in the Development Schedule; (ii) fail to comply with any other term and condition of this Agreement; (iii) make or attempt to make a transfer, sale or assignment of this Agreement in violation of this Agreement; or (iv) you or other entity owned by the Owners are in default under any individual Franchise Agreement with us, or of any other agreement to which we are parties; any such event shall constitute a default under this Agreement. Upon any such default, we, in our sole discretion, may do any one or more of the following:
- (a) Terminate this Agreement and all rights granted hereunder to you without affording you any opportunity to cure the default effective immediately upon delivery to you of a written notice from us;
- (b) Reduce the number of Aira Fitness Centers which you have the right to establish and open pursuant to this Agreement; or
- (c) Exercise any other rights and remedies which we may have under applicable law.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a developer or an entity owned by the owners defaults on any individual Franchise Agreement with Aira Fitness or any other agreement to which Aira Fitness is a party, it constitutes a default under the Development Agreement.
Upon such a default, Aira Fitness has the discretion to take one or more of the following actions: terminate the Development Agreement and all rights granted to the developer without any opportunity to cure the default, effective immediately upon written notice; reduce the number of Aira Fitness Centers the developer has the right to establish and open under the Development Agreement; or exercise any other rights and remedies available under applicable law.
It is important to note that a default under the Development Agreement does not automatically constitute a default under any individual Franchise Agreement between the parties. Compliance with the terms and conditions of each Franchise Agreement by the franchisee (or their affiliate) determines whether a default exists under that specific Franchise Agreement. This means each agreement is treated separately, and defaulting on one doesn't automatically trigger a default on another.