What happens if an Aira Fitness franchisee fails to repair or replace a Pod after material damage?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Events of Default. An Event of Default shall occur hereunder if Franchisee:
- (c) fails to keep the Pod insured as required by § 6(b) herein, or fails to repair or replace any Pod that suffers any material uninsured damage, loss, theft, or destruction, or fails to pay any amount demanded by Franchisor's Affiliate pursuant to Section 6(a) herein; or
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 fails to repair or replace a Pod (the fitness equipment) after it has sustained uninsured material damage, it constitutes an event of default under the lease agreement.
This default can trigger consequences outlined in the agreement, potentially leading to further action by Aira Fitness's affiliate. The franchisee is responsible for maintaining insurance on the Pod, and failure to do so also constitutes an event of default. The franchisee bears the risk of loss or damage to the Pod from the moment it ships or the purchase order is confirmed.
The document specifies that such loss or damage does not relieve the franchisee of their obligations under the lease. The affiliate has the option to require the franchisee to repair the Pod, replace it, or pay an amount equal to accrued unpaid rent. This highlights the importance of maintaining adequate insurance coverage and promptly addressing any damage to the equipment to avoid being in default of the lease agreement with Aira Fitness.