If Aira Fitness assumes the lease, who is responsible for the lease obligations incurred after the effective date of the assignment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Aira Fitness's 2025 Franchise Disclosure Document, if Aira Fitness elects to assume the lease, it will be responsible for the lease obligations incurred after the effective date of the assignment. The franchisee will remain liable for the responsibilities and obligations, including amounts owed to the Landlord, prior to the date of assignment and assumption.
This means that if Aira Fitness takes over the lease of a franchise location, they become responsible for all future lease payments and obligations from that point forward. However, the original franchisee is still responsible for any outstanding lease payments or other obligations that were incurred before Aira Fitness assumed the lease.
This clause protects the landlord by ensuring that someone is always responsible for the lease obligations. It also clarifies the financial responsibilities of both the franchisee and Aira Fitness in the event of a lease assignment. Furthermore, Aira Fitness has 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.