If I fail to cure a default, does Aira Fitness have the right to operate my Aira Fitness business?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to our right to terminate this Agreement and not in lieu of such right or any other rights, in the event that you have not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, we may, at our option, enter upon the premises and exercise complete authority with respect to the operation of the Aira Fitness Business until such time as we determine that the default has been cured and that there is compliance with the requirements of this Agreement.
You acknowledge and agree that our agent or other representative we designate may take over, control and operate the Business, that you shall pay us a fee for such management service, not to exceed fifteen percent (15%) of Gross Sales plus all travel expenses, room and board and other expenses actually incurred by such agent or representative so long as it shall be required to enforce compliance with this Agreement.
You further acknowledge that if we temporarily operate the Business on your behalf under this Paragraph 14.D., you will indemnify us and hold us and our agent or representative harmless and respecting any and all claims arising out of our operation of the Business under this Paragraph 14.D..
Nothing herein shall require us to operate the Business when you are in default.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee fails to cure a default under the Franchise Agreement within fourteen days of receiving written notice, Aira Fitness has the option to enter the premises and take control of the Aira Fitness Business. This control will continue until Aira Fitness determines that the default has been resolved and the franchisee is compliant with the agreement.
During this period, an agent or representative designated by Aira Fitness may manage the business. The franchisee is required to pay Aira Fitness a management fee for this service, which will not exceed fifteen percent of Gross Sales. Additionally, the franchisee must cover all travel expenses, room and board, and other expenses incurred by the agent or representative during their management of the business.
The franchisee is also obligated to indemnify Aira Fitness and its agent or representative against any claims arising from their operation of the business during the default period. However, Aira Fitness is not obligated to operate the business on behalf of the franchisee during the default.
This clause allows Aira Fitness to protect its brand and maintain operational standards even when a franchisee is in default, but it also places a financial burden on the franchisee to cover the costs associated with Aira Fitness's management of the business during the period of default.