If Aira Fitness assumes a lease, can it sublease the premises to another Aira Fitness franchisee without further landlord approval?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Aira Fitness's 2025 Franchise Disclosure Document, if Aira Fitness elects to assume a lease, it has the right to sublease the premises to another Aira Fitness franchisee without needing further approval from the landlord. However, there are conditions that must be met. The new franchisee must agree to operate the Aira Fitness Business as an Aira Fitness Business, and they must do so under a franchise agreement with Aira Fitness.
This clause is included in an addendum to the lease agreement between the landlord and the original tenant (the franchisee). This addendum ensures that Aira Fitness has certain rights related to the property, especially in cases where the original franchisee defaults or the franchise agreement is terminated. The addendum also states that the landlord acknowledges the tenant is not an agent or employee of Aira Fitness, clarifying that Aira Fitness is not liable for the tenant's obligations.
This provision benefits Aira Fitness by giving it flexibility in managing its franchise locations. If a franchisee fails, Aira Fitness can step in, take over the lease, and quickly install a new franchisee without delays from seeking additional landlord approvals. This helps maintain the Aira Fitness brand presence and minimizes disruption to the business. For a prospective franchisee, this indicates that Aira Fitness has a vested interest in ensuring the continuity of its franchise operations and has taken steps to secure locations even if the original franchisee does not succeed.
However, it is important to note that the original franchisee remains liable for responsibilities and obligations, including amounts owed to the landlord, prior to the date of assignment and assumption of the lease by Aira Fitness. Aira Fitness will only be responsible for lease obligations incurred after the effective date of the assignment. This distinction is crucial for all parties involved to understand their respective liabilities.