factual

What happens if an Aira Fitness franchisee breaches their obligations regarding the use of the Marks?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

A breach of your obligations under this Section 3.B is a material default under this Agreement.

15. POST-TERM OBLIGATIONS

A. Reversion of Rights; Discontinuation of Trademark Use. All of your rights to the use of the Marks and all other rights and licenses granted in this Agreement and the right and license to conduct business under the Marks at the Authorized Location will revert to us without further act or deed of any party. All of your right, title and interest in, to and under this Agreement will become our property. You must immediately comply with the postterm non-compete obligations under Section 11.D, cease all use and display of the Marks and of any proprietary material (including the Manual) and of all or any portion of promotional materials furnished or approved by us, assign all right, title and interest in the telephone numbers for the Aira Fitness Business and cancel or assign, at our option, any assumed name rights or equivalent registrations filed with authorities. You must pay all sums due to us, our affiliates or designees and all sums you owe to third parties that have been guaranteed by us or any of our affiliates. You must immediately return to us, at your expense, all copies of the Manuals then in your possession or control or previously disseminated to your employees and continue to comply with the confidentiality provisions of Section 6.I. You must promptly at your expense and subject to Section 15.B, remove or obliterate all Aira Fitness Business signage, displays or other materials in your possession at the Authorized Location or elsewhere that bear any of the Marks or names or material confusingly similar to the Marks and so alter the appearance of the Aira Fitness Business as to differentiate the Aira Fitness Business unmistakably from duly licensed Aira Fitness Businesses identified by the Marks. If, however, you refuse to comply with the provisions of the preceding sentence within thirty (30) days, we have the right to enter the Authorized Location and remove all Aira Fitness Business signage, displays or other materials in your possession at the Authorized Location or elsewhere that bear any of the Marks or names or material confusingly similar to the Marks, and you must reimburse us for our costs incurred.

and orders of specific performance to: (i) enforce the provisions of this Agreement relating to your use of the Marks and the non-disclosure and non-competition obligations under this Agreement; (ii) prohibit any act or omission by Developer or its Owners that constitutes a violation of any applicable law, ordinance or regulation, constitutes a danger to the public, or may impair the goodwill associated with the Marks or the AIRA FITNESS franchises; (iii) prevent any other irreparable harm to our interests; (iv) enforce your obligations upon termination or expiration of this Agreement; and (v) prohibit an assignment or attempted assignment of any interest in this Agreement or Developer in violation of the applicable provisions of this Agreement. If we obtain an injunction or order of specific performance, you agree to pay us an amount equal to the total of our costs of obtaining it, including, without limitation, reasonable attorneys' fees, expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision.

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

What This Means (2025 FDD)

According to the 2025 Aira Fitness Franchise Disclosure Document, a breach of obligations regarding the use of the Marks constitutes a material default under the Franchise Agreement. This means Aira Fitness would consider it a serious violation of the agreement.

In the event of such a breach, Aira Fitness has the right to seek injunctive relief and orders of specific performance to enforce the provisions related to the use of the Marks. This allows Aira Fitness to take immediate legal action to stop the franchisee from further misuse of the trademarks. The franchisee may also be responsible for covering Aira Fitness's costs associated with obtaining the injunction or order of specific performance, including attorney's fees, expert witness fees, investigation costs, court costs, and travel expenses.

Furthermore, upon termination of the Franchise Agreement, all rights to use the Marks revert back to Aira Fitness, and the franchisee must immediately cease all use and display of the Marks. The franchisee is also obligated to remove all Aira Fitness signage and materials bearing the Marks from the premises and alter the appearance of the business to differentiate it from authorized Aira Fitness locations. Failure to comply with these post-term obligations within thirty days allows Aira Fitness to enter the location and remove the signage at the franchisee's expense. These measures ensure that the Aira Fitness brand and trademarks are protected even after a franchise agreement ends due to a breach.

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.