What happens to the rights to establish and open Aira Fitness Centers if the Development Agreement is terminated or expires?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.4 Upon termination or expiration of this Agreement, all remaining rights granted to you to establish and open Aira Fitness Centers under this Agreement for which a Franchise Agreement has not been executed shall automatically be null and void.
You shall have no right to establish, open or operate any Aira Fitness Centers for which a Franchise Agreement has not been executed by us prior to the date of termination or expiration of this Agreement.
Upon termination or expiration of this Agreement, we will have the right to establish ourselves or through an affiliate or grant to a third party the right to establish a Aira Fitness Center within the Development Territory as long as there is no violation of the territorial protections granted to you under existing individual Franchise Agreements.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if the Development Agreement is terminated or expires, the franchisee's rights to establish and open Aira Fitness Centers are impacted. Specifically, all remaining rights granted to the franchisee to establish and open Aira Fitness Centers under the Development Agreement, for which a Franchise Agreement has not been executed, automatically become null and void. The franchisee loses the right to establish, open, or operate any Aira Fitness Centers if a Franchise Agreement hasn't been executed by Aira Fitness before the termination or expiration date of the Development Agreement.
Following the termination or expiration of the Development Agreement, Aira Fitness retains the right to establish Aira Fitness Centers themselves, through an affiliate, or by granting the right to a third party within the Development Territory. However, this is conditional on not violating any territorial protections granted to the franchisee under existing individual Franchise Agreements. This means that while the franchisee loses the rights to develop new locations without a franchise agreement, their existing franchised locations' territories remain protected.
This clause is significant for potential Aira Fitness franchisees as it emphasizes the importance of executing Franchise Agreements for all intended locations before the Development Agreement expires. Failing to do so results in the loss of development rights for those locations. The franchisee should also be aware that Aira Fitness can then develop those locations themselves or grant them to others, potentially increasing competition within the originally intended development area, provided existing franchisees' territories are not violated.