What happens if an Aira Fitness franchisee continues to operate after the initial term expires but does not meet the renewal requirements?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you continue to accept the benefits of this Agreement after the expiration of the initial term but do not complete the requirements in Section 4.B, then at our sole option, this Agreement may be treated as (i) expired as of the date of the expiration and you will be operating without a franchise or license to do so and in violation of our rights to the Marks and System; or (ii) continued on a month-to-month basis (an "Interim Period") and all your obligations will remain in full force and effect during the Interim Period as if the Agreement had not expired.
Each Interim Period expires at the end of each calendar month unless this Agreement is continued as provided in this Section.
The Interim Period does not create any new franchise rights and upon expiration of the final Interim Period, you will be bound by all post-term obligations as provided 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 franchisee continues to operate after the initial term expires but does not meet the renewal requirements, Aira Fitness has the option to treat the agreement as either expired or continued on a month-to-month basis.
If Aira Fitness treats the agreement as expired, the franchisee will be considered to be operating without a franchise or license and in violation of Aira Fitness's rights to its Marks and System. This means the franchisee would no longer have the legal right to operate an Aira Fitness business and would be infringing on Aira Fitness's intellectual property.
Alternatively, Aira Fitness may choose to continue the agreement on a month-to-month basis, referred to as an "Interim Period." During this Interim Period, all of the franchisee's obligations under the original agreement remain in full force and effect. However, the Interim Period does not create any new franchise rights, and upon the expiration of the final Interim Period, the franchisee will be bound by all post-term obligations as outlined in the agreement. This means that even during the Interim Period, the franchisee is still subject to the terms of the franchise agreement, but this arrangement is temporary and does not guarantee a renewal or extension of the franchise.