What happens to the rights to establish and open Aira Fitness Centers under the Development Agreement if the 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, upon the termination or expiration of the Development Agreement, all remaining rights granted to the developer to establish and open Aira Fitness Centers for which a Franchise Agreement has not been executed automatically become null and void. The developer 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.
Following the termination or expiration, 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. This is permissible as long as it doesn't violate any territorial protections already granted to the developer under existing individual Franchise Agreements.
This means that a developer who has not fulfilled their development schedule or secured individual Franchise Agreements for all planned locations risks losing the opportunity to expand within their designated territory upon termination or expiration of the Development Agreement. Aira Fitness can then either directly compete or allow others to compete in the area where the developer had planned to expand. Therefore, it is crucial for developers to adhere to the development schedule and secure Franchise Agreements in a timely manner to retain their expansion rights.