If Aira Fitness chooses to purchase the assets of the Aira Fitness Business, how is the purchase price determined?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, we also will have the option, to purchase any or all of the assets used in connection with the operation of the Aira Fitness Business including, without limitation, equipment, fixtures, signage, furnishings, supplies and leasehold improvements. The purchase price for the assets will be determined by a qualified appraiser selected with the consent of both parties, provided we give you written notice of our preliminary intent to exercise our purchase rights under this Section 15.B. within thirty (30) days after the date of the expiration or termination of this Agreement. If the parties cannot agree upon the selection of an appraiser(s), each party will appoint their own appraiser and the two appraisers will select a neutral appraiser, who will independently perform the appraiser. Within forty-five (45) days after our receipt of the appraisal report, we or our designated purchaser will identify the assets, if any, that we intend to purchase at the price designated for those assets in the appraisal report. We or our designated purchaser and you will then proceed to complete and close the purchase of the identified assets, and to prepare and execute purchase and sale documents customary for the assets being purchased, in a commercially reasonable time and manner. We and you will each pay one-half of the appraiser's fees and expenses.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 FDD, if Aira Fitness chooses to purchase the assets of an Aira Fitness Business upon termination or expiration of the franchise agreement, the purchase price will be determined by a qualified appraiser. This appraiser must be selected with the consent of both Aira Fitness and the franchisee. Aira Fitness must provide written notice of their intent to purchase the assets within thirty days after the termination or expiration date.
If Aira Fitness and the franchisee cannot agree on a single appraiser, each party will appoint their own appraiser. These two appraisers will then select a neutral third appraiser who will independently assess the value of the assets. Within forty-five days of receiving the appraisal report, Aira Fitness will identify which assets they intend to purchase, and the price for those assets will be based on the appraisal report.
Both Aira Fitness and the franchisee will each be responsible for paying one-half of the appraiser's fees and expenses. The assets that Aira Fitness may purchase include equipment, fixtures, signage, furnishings, supplies, and leasehold improvements. This process ensures that the asset purchase price is determined fairly by an independent valuation, although the franchisee bears the risk of disagreement and the cost of appraisal.