What happens if an Aira Fitness franchisee attempts to assign rights without the franchisor's consent?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 the 2025 Aira Fitness Franchise Disclosure Document, making or attempting to make a transfer, sale, or assignment of the Franchise Agreement in violation of the agreement constitutes a default.
Upon such a default, Aira Fitness has the sole discretion to take one or more of the following actions: terminate the agreement and all rights granted to the franchisee immediately upon written notice without an opportunity to cure the default, reduce the number of Aira Fitness Centers the franchisee has the right to establish and open, or exercise any other rights and remedies available under applicable law.
This means that if a franchisee tries to transfer their franchise rights without first obtaining Aira Fitness's approval, Aira Fitness can terminate the franchise agreement, reduce the franchisee's development rights, and/or pursue other legal remedies. This provision underscores the importance of obtaining franchisor consent before attempting to transfer any rights or obligations under the franchise agreement.