What happens if a suit to foreclose any lien or mortgage against the developer's premises or business assets is instituted against the developer, according to the Aira Fitness Development Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 You shall be in default under this Agreement, and all rights granted herein to you shall automatically terminate without notice or an opportunity to cure if:
- (d) if suit to foreclose any lien or mortgage against Developer's premises or business assets is instituted against you and not dismissed within thirty (30) days, or is not in the process of being dismissed; provided, however, that Franchisor reserves the right to be named as trustee or receiver in any voluntary
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a suit to foreclose any lien or mortgage against the developer's premises or business assets is instituted against the developer, it constitutes a default under the Development Agreement.
Specifically, all rights granted to the developer under the agreement will automatically terminate without notice or an opportunity to cure if such a suit is instituted and not dismissed within thirty 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 proceeding.
This clause protects Aira Fitness by ensuring that developers maintain financial stability and that any serious legal challenges to their assets are resolved promptly. The 30-day window provides a limited opportunity to address the issue, but failure to do so results in immediate termination of the agreement. This could have significant financial implications for the developer, who would lose the rights to open Aira Fitness centers in the designated area.