If the Aira Fitness Development Agreement is terminated, what rights does the developer lose regarding establishing new centers?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.4 Upon termination or expiration of this Agreement, all remaining rights granted to you to establish and open Aira Fitness Centers under this Agreement for which a Franchise Agreement has not been executed shall automatically be null and void.
You shall have no right to establish, open or operate any Aira Fitness Centers for which a Franchise Agreement has not been executed by us prior to the date of termination or expiration of this Agreement.
Upon termination or expiration of this Agreement, we will have the right to establish ourselves or through an affiliate or grant to a third party the right to establish a Aira Fitness Center within the Development Territory as long as there is no violation of the territorial protections granted to you under existing individual Franchise Agreements.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if the Development Agreement is terminated or expires, the developer loses all rights to establish and open new Aira Fitness centers for which a Franchise Agreement has not been executed. Specifically, the developer cannot establish, open, or operate any Aira Fitness Centers if a Franchise Agreement hasn't been finalized before the termination or expiration date.
Additionally, Aira Fitness retains the right to establish centers themselves, through affiliates, or by granting rights to third parties within the Development Territory. This is allowed as long as it doesn't violate any territorial protections granted to the developer under existing individual Franchise Agreements.
This clause protects Aira Fitness by ensuring that terminated developers cannot continue to expand the franchise using the franchisor's system without authorization. It also allows Aira Fitness to reassign development rights to other parties, ensuring continued growth of the franchise. For a prospective developer, this highlights the importance of fulfilling the Development Agreement to maintain the right to establish new Aira Fitness centers within the designated territory.