What happens to the rights to establish and open Aira Fitness Centers if a Franchise Agreement has not been executed upon termination or expiration of the Development Agreement?
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 a Franchise Agreement has not been executed for an Aira Fitness Center by the time the Development Agreement terminates or expires, the developer's rights to establish and open that particular center are automatically null and void. The developer loses any right to open or operate Aira Fitness Centers for which a Franchise Agreement hasn't been finalized before the termination or expiration date. This means that the developer must ensure all agreements are in place before the deadline to maintain their development rights.
Following the termination or expiration of the Development Agreement, Aira Fitness retains the right to establish a center 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 that are already in place under existing individual Franchise Agreements. This clause protects existing franchisees' territories while allowing Aira Fitness to continue developing the brand.
This provision highlights the importance of adhering to the Development Schedule and securing Franchise Agreements in a timely manner. A prospective Aira Fitness developer should be aware that failure to finalize these agreements can result in a loss of development rights, potentially impacting their investment and expansion plans. It is crucial to maintain open communication with Aira Fitness and ensure all requirements are met to avoid such a situation.