If the exclusion of multiparty arbitration is deemed unenforceable for an Aira Fitness franchise, what happens?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Multiparty arbitration is specifically excluded, and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or other proceeding involving third parties. In the event a court or arbitrator determines that this exclusion of multiparty arbitration (including class arbitration) is unenforceable, then this entire commitment to arbitrate will be null and void and the parties must submit all claims to the jurisdiction of the courts.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the franchise agreement stipulates that any arbitration must be conducted on an individual basis, explicitly excluding multiparty arbitration, including class actions. Franchisees and their owners waive any right to participate in consolidated, common, or class action lawsuits.
However, if a court or arbitrator determines that the exclusion of multiparty arbitration is unenforceable, the agreement to arbitrate becomes null and void. In this scenario, all claims must be submitted to the jurisdiction of the courts rather than proceeding through arbitration.
This clause is significant for prospective Aira Fitness franchisees because it clarifies the process for dispute resolution. It highlights that franchisees initially agree to individual arbitration but retain the right to pursue claims through the court system if the multiparty arbitration exclusion is deemed unenforceable. Franchisees should be aware of the implications of waiving their rights to participate in class action lawsuits and understand the alternative legal avenues available if the arbitration agreement is invalidated.