If Aira Fitness's Affiliate cancels the Pod lease, does the entire lease terminate?
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 s
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 FDD, the lease agreement between the Aira Fitness franchisee and the Franchisor's Affiliate (Pure Gym Equipment LLC) is explicitly non-cancelable for its entire term, unless there is a written rider signed by both parties that specifically grants the franchisee a right of prepayment. This means that generally, the lease cannot be terminated prematurely by the Franchisor's Affiliate.
Upon the lease's expiration, the agreement transitions into a month-to-month lease under the same terms and conditions until the Pod and all other leased equipment are returned to the Franchisor's Affiliate, or until the franchisee exercises their purchase option. During this month-to-month period, the monthly rent remains the same as the rent in effect during the original term.
The franchisee has the option to purchase the Pod at the end of the lease term or during any month-to-month period for $20,000, provided they give the Franchisor's Affiliate written notice at least 30 days before exercising the option, are not in default under any lease covenant, and pay all rent and other charges due. Upon exercising the purchase option and making full payment, the Franchisor's Affiliate will provide a bill of sale for the Pod, but the sale is explicitly without any representation or warranty, and the franchisee accepts the Pod "AS IS" and "WHERE IS".