What happens if an Aira Fitness franchisee fails to cure a default within the specified cure period?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement and not in lieu of such right or any other rights, in the event that you have not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, we may, at our option, enter upon the premises and exercise complete authority with respect to the operation of the Aira Fitness Business until such time as we determine that the default has been cured and that there is compliance with the requirements of this Agreement.
You acknowledge and agree that our agent or other representative we designate may take over, control and operate the Business, that you shall pay us a fee for such management service, not to exceed fifteen percent (15%) of Gross Sales plus all travel expenses, room and board and other expenses actually incurred by such agent or representative so long as it shall be required to enforce compliance with this Agreement.
You further acknowledge that if we temporarily operate the Business on your behalf under this Paragraph 14.D., you will indemnify us and hold us and our agent or representative harmless and respecting any and all claims arising out of our operation of the Business under this Paragraph 14.D..
Nothing herein shall require us to operate the Business when you are in default.
- E.
Other Remedies.
In addition to and without limiting our rights and remedies under this Agreement, any other agreement and applicable law, upon any events upon which we may terminate this Agreement under this Article 14, we may, at our sole option and upon delivery of written notice to you, elect to take any or all of the following actions without terminating this Agreement:
(1) temporarily or permanently reduce the size of the Designated Area, in which even the restrictions upon Paragraph 2.C. will not apply in the geographic area that was removed from the Designated Area;
(2) suspend online enrollment;
(3) suspend our facilitation of the member billing process;
(2) refuse to provide any operation support that this Agreement required or we have elected to provide or suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement; and/or
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 fails to cure a default within the given cure period, Aira Fitness has several options. Aira Fitness can enter the premises and take over the Aira Fitness Business operations until they determine the default is resolved and the franchisee complies with the agreement. During this period, an agent or representative designated by Aira Fitness will manage the business, and the franchisee must pay a fee for this service. This fee will not exceed 15% of Gross Sales, in addition to covering all travel expenses, room and board, and other expenses incurred by the agent or representative. The franchisee is also responsible for indemnifying Aira Fitness and its representatives against any claims arising from their operation of the business during the default period.
In addition to taking over operations, Aira Fitness can also choose other actions without terminating the agreement. These include temporarily or permanently reducing the size of the Designated Area, suspending online enrollment, suspending facilitation of the member billing process, and refusing to provide operational support or other services.
It's important to note that certain defaults allow Aira Fitness to terminate the agreement immediately without any opportunity to cure, such as abandonment of the location, unauthorized use of confidential information, bankruptcy, or conviction of a felony. Other defaults may allow for only a 24-hour cure period, such as those that materially impair the goodwill associated with the Marks or present a health or safety hazard. The specific cure period and consequences for failing to cure a default will depend on the nature of the default and the terms outlined in the Franchise Agreement.