What happens to the Aira Fitness Pod Lease Agreement upon expiration of its term if the Pod is not returned or purchased?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ch month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the due date thereof, Franchisee will pay on demand, as an additional late service and/or overhead charge, but not as interest, on amounts not paid when due, the greater of One Hundred Dollars ($100.00) or, in amount equal to eighteen percent (18%) of any such unpaid amount but in no event to exceed maximum lawful charges. TIME IS OF THE ESSENCE FOR THE PAYMENT OF RENT UNDER THIS PROVISION.
THIS LEASE IS NON-CANCELABLE FOR ITS ENTIRE TERM and Franchisee has no right of prepayment unless specifically granted to Franchisee in a written rider signed by the parties hereto. Upon expiration of the term of this Lease, and until return to Franchisor's Affiliate of the Pod and any and all other equipment leased hereunder, or until any purchase option price is paid, this Lease shall remain effective and shall become a month-to-month lease between the parties on the same terms and conditions, and the monthly rent then in effect shall be the rent payable during such month-to-month term under each applicable schedule ("Month-to-Month Period").
Franchisee may purchase the Pod at the end of the term and during any Month-to-Month Period of this Lease in an amount equal to Twenty Thousand Dollars ($20,000.00), provided that (a) Franchisee gives Franchisor's Affiliate written notice of Franchisee's intention to exercise the option at least 30 days prior to the exercise of such option; (b) Franchisee is not in default under any covenant or condition of this Lease, and (
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if the franchisee does not return the Pod or exercise their purchase option at the end of the lease term, the lease automatically converts to a month-to-month agreement. The terms and conditions of the original lease, including the monthly rent, remain in effect during this month-to-month period.
This arrangement continues until the franchisee either returns the Pod to Franchisor's Affiliate or purchases it. The purchase price for the Pod during this extended period is $20,000, provided the franchisee gives written notice 30 days prior to exercising the purchase option, is not in default under the lease, and pays all outstanding rent and charges. Upon completion of the purchase, Franchisor's Affiliate will provide a bill of sale without any warranties, and the franchisee accepts the Pod "AS IS" and "WHERE IS".
For a prospective Aira Fitness franchisee, this means that failing to return or purchase the Pod at the end of the initial lease term does not automatically terminate their obligations. Instead, it creates a flexible but potentially more costly month-to-month arrangement. The franchisee should carefully consider their options at the end of the lease term to avoid unexpected expenses or continued obligations under the lease agreement.