If Aira Fitness's Affiliate performs the franchisee's agreements, what additional charges can the franchisee incur?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Assignment. Tenant has the right to assign all of its right, title and interest in the Lease to Aira Fitness or its successor, or either company's affiliates, at any time during the term of the Lease, including any extensions or renewals, without first obtaining Landlord's consent. No assignment will be effective, however, until Aira Fitness or its successor or designated affiliate gives Landlord written notice of its acceptance of the assignment. If Aira Fitness elects to assume the lease under this paragraph or unilaterally assumes the lease as provided for in subparagraphs 3(c) or 4(a), Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations, including amounts owed to Landlord, prior to the date of assignment and assumption, and (ii) Aira Fitness will have the right to sublease the Premises to another AIRA FITNESS franchisee, without further need for Landlord approval, provided the franchisee agrees to operate the Aira Fitness Business as an Aira Fitness Business pursuant to a franchise agreement with Aira Fitness. Aira Fitness will be responsible for the lease obligations incurred after the effective date of the assignment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, if Aira Fitness or its affiliates take over a franchisee's lease, the franchisee remains liable for responsibilities and obligations, including amounts owed to the landlord, prior to the date of assignment and assumption. Aira Fitness will be responsible for lease obligations incurred after the effective date of the assignment. This means that a franchisee could potentially face additional charges for any outstanding debts or liabilities related to the lease that accrued before Aira Fitness assumed the lease.
This clause protects the landlord by ensuring that the original tenant (the franchisee) remains responsible for any outstanding debts incurred before the lease assignment. For a prospective Aira Fitness franchisee, this highlights the importance of maintaining good standing with the landlord and fulfilling all lease obligations to avoid potential liabilities if the lease is ever assigned to Aira Fitness or its affiliates.
It is important for franchisees to understand their obligations under the lease agreement and to maintain open communication with both Aira Fitness and the landlord to ensure a smooth transition in the event of a lease assignment. Franchisees should seek legal counsel to fully understand the implications of this clause and to protect their interests.