What happens if an Aira Fitness franchisee breaches their lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to refuse to consent to a relocation in the event you lose the right to occupy the Aira Fitness Business premises because of the termination of your lease due to your breach. Further, the cancellation of your lease due to your breach is grounds for immediate termination under Section 14.B.2.
4. Default and Notice.
- (a) In the event there is a default or violation by Tenant under the terms of the Lease, Landlord agrees to give Tenant and Aira Fitness written notice of such default or violation within a reasonable time after Landlord knows of its occurrence. Landlord agrees to provide Aira Fitness the written notice of default as written and on the same day Landlord gives it to Tenant. Although Aira Fitness is under no obligation to cure the default, Aira Fitness will notify Landlord it intends to cure the default and unilaterally assume Tenant's interest in the lease as provided in Paragraph 3(c). Aira Fitness will have an additional fifteen (15) days from the expiration of Tenant's cure period in which to cure the default or violation.
(c) Upon Tenant's default and failure to cure a default under either the Lease or the Franchise Agreement, Aira Fitness has the right (but not the obligation) to unilaterally assume Tenant's interest in the Lease in accordance with Paragraph 2.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a franchisee breaches their lease agreement, Aira Fitness has specific rights and potential actions it can take. Aira Fitness has the right to refuse consent to a relocation of the Aira Fitness Business if the franchisee loses the right to occupy the premises due to the termination of their lease because of a breach.
Furthermore, the FDD states that the cancellation of the lease due to the franchisee's breach is grounds for immediate termination of the Franchise Agreement, as outlined in Section 14.B.2. This means that a franchisee's failure to comply with the terms of their lease can have severe consequences, including the loss of their franchise.
Aira Fitness also has the option, but not the obligation, to step in and assume the franchisee's interest in the lease, even in the event of a default. To ensure Aira Fitness is aware of any potential issues, the landlord is required to provide written notice to both the tenant (franchisee) and Aira Fitness of any default or violation under the lease terms. Aira Fitness then has an additional fifteen days from the expiration of the franchisee's cure period to address the default or violation.