What happens if an Aira Fitness franchisee defaults on any covenant or condition of the Pod Lease regarding the purchase option?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
igned by the parties hereto. Upon expiration of the term of this Lease, and until return to Franchisor's Affiliate of the Pod and any and all other equipment leased hereunder, or until any purchase option price is paid, this Lease shall remain effective and shall become a month-to-month lease between the parties on the same terms and conditions, and the monthly rent then in effect shall be the rent payable during such month-to-month term under each applicable schedule ("Month-to-Month Period").
Franchisee may purchase the Pod at the end of the term and during any Month-to-Month Period of this Lease in an amount equal to Twenty Thousand Dollars ($20,000.00), provided that (a) Franchisee gives Franchisor's Affiliate written notice of Franchisee's intention to exercise the option at least 30 days prior to the exercise of such option; (b) Franchisee is not in default under any covenant or condition of this Lease, and (
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee's ability to purchase the Pod at the end of the lease term is contingent upon not being in default under any covenant or condition of the lease. The franchisee can purchase the Pod at the end of the term or during any month-to-month period for $20,000.
To exercise this purchase option, the Aira Fitness franchisee must provide written notice to the Franchisor's Affiliate at least 30 days before exercising the option. Additionally, the franchisee must not be in default under any covenant or condition of the lease and must pay all rent and other charges due, along with the full purchase price.
If the franchisee meets all these conditions, the Franchisor's Affiliate will execute and deliver a bill of sale for the Pod. The sale is explicitly "AS IS" and "WHERE IS," without any representations or warranties. Therefore, any default on the lease agreement prevents the franchisee from being able to exercise the option to purchase the Pod.