What happens if a suit to foreclose any lien or mortgage against an Aira Fitness developer is instituted?

According to Aira Fitness's 2025 Franchise Disclosure Document, if a suit to foreclose any lien or mortgage against the Aira Fitness developer's premises or business assets is instituted against them, it constitutes a default under the Development Agreement.

Specifically, the rights granted to the developer will automatically terminate without notice or an opportunity to cure if such a suit is instituted and not dismissed within thirty (30) days, or is not in the process of being dismissed. However, Aira Fitness reserves the right to be named as trustee or receiver in any voluntary action or petition of insolvency filed by the developer.

This clause protects Aira Fitness by allowing them to terminate the agreement if the developer faces significant financial or legal challenges that could jeopardize their ability to fulfill their obligations. The 30-day window provides a limited opportunity for the developer to resolve the issue, but ultimately, Aira Fitness maintains control over the situation to safeguard its brand and interests. This type of clause is relatively standard in franchise agreements, as franchisors need to protect their system from franchisees facing financial distress.