What happens if the proposed transferee fails to meet the conditions for transfer of the Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void and will provide us with the right to elect either to default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfer fee provided for in Section 12.C.
- C.
Conditions of Transfer.
We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
Transferee Qualifications.
The transferee must meet all of our then-current requirements for the franchise we are offering at the time of the proposed transfer.
Payment of Amounts Owed.
All amounts owed by you to us or any of our affiliates, your suppliers or any landlord for the Aira Fitness Business premises and Authorized Location, or upon which we or any of our affiliates have any contingent liability must be paid in full.
Reports.
You must have provided all required reports to us in accordance with Section 10.
Modernization.
You must have complied with the provisions of Section 5.F.
Guarantee.
In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
Consent to Transfer; General Release.
You, each Owner and each guarantor must execute all transfer documents that we require and in the form we designate, which documents will include a general release
of all claims arising out of or relating to this Agreement, your Aira Fitness Business or the parties' business relationship; provided, however, that the release will not be inconsistent with any state law regulating franchising.
Training.
The transferee must, at your or the transferee's expense, comply with the training requirements of Section 7.B.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, any attempted transfer without prior written consent from Aira Fitness or not complying with the terms of the franchise agreement will be considered void. In such a case, Aira Fitness has the right to either terminate the agreement or collect a transfer fee from the franchisee and guarantors. This fee is equal to two times the standard transfer fee outlined in Section 12.C of the agreement.
Section 12.C lists the conditions of transfer. These include the transferee meeting Aira Fitness's current requirements for franchisees, settling all outstanding debts to Aira Fitness and its affiliates, providing all required reports, complying with modernization requirements, and, in the case of an installment sale, providing a guarantee of performance. Additionally, all parties involved, including owners and guarantors, must execute the required transfer documents, including a general release of claims. The transferee must also comply with the training requirements outlined in Section 7.B.
This provision protects Aira Fitness by ensuring that any transfer of the franchise meets their standards and does not negatively impact the brand. For a prospective franchisee looking to sell their Aira Fitness business in the future, it's crucial to understand these conditions and ensure any potential buyer is fully qualified and able to meet them. Failure to do so could result in termination of the franchise agreement or significant financial penalties.