If Aira Fitness assumes the lease, can they sublease the premises to another Aira Fitness franchisee without further landlord approval?
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 a lease, whether through assignment or unilaterally due to tenant default or lease expiration, it gains the right to sublease the premises to another Aira Fitness franchisee without needing further approval from the landlord. This is contingent on the new franchisee agreeing to operate the Aira Fitness Business in accordance with a franchise agreement with Aira Fitness.
This provision offers Aira Fitness flexibility in managing locations, particularly if a franchisee exits the system. It allows for a seamless transition to a new franchisee without the potential delays or complications of seeking landlord approval, which can be a significant advantage in maintaining brand presence and operational continuity.
However, it's important to note that Aira Fitness is responsible for the lease obligations incurred after the effective date of the assignment. This means Aira Fitness carries the financial responsibility of the lease during any sublease period. The original franchisee remains liable for responsibilities and obligations, including amounts owed to the Landlord, prior to the date of assignment and assumption.