What happens if an Aira Fitness franchisee continues to operate after the initial term without meeting 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 without fulfilling the renewal requirements, Aira Fitness has two options. First, Aira Fitness can treat the agreement as expired, meaning the franchisee is operating without a franchise or license and is violating Aira Fitness's rights to its marks and system. Alternatively, Aira Fitness can allow the agreement to continue on a month-to-month basis, referred to as an "Interim Period."
During this Interim Period, all of the franchisee's obligations remain in full effect as if the agreement had not expired. Each Interim Period expires at the end of each calendar month unless the agreement is formally continued. It is important to note that the Interim Period does not create any new franchise rights for the Aira Fitness franchisee.
Upon the expiration of the final Interim Period, the franchisee is bound by all post-term obligations as outlined in the agreement. This means that even though the franchisee was allowed to continue operating temporarily, they must still adhere to the terms and conditions that apply after the franchise agreement has ended.