If an Aira Fitness franchisee is a corporation, what must they represent regarding their corporate status?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company, partnership or similar entity, you and each of your Owners represents and warrants that your ownership is completely and accurately listed on the Summary Page and that you will provide us with updated ownership information so that at all times the ownership information is current, complete and accurate.
In addition, you represent and warrant that: (i) you are duly organized, in good standing and authorized to conduct business in your state of incorporation and the state
where the Aira Fitness Business is located; **(**ii) you will confine your activities, and your governing documents will at all times provide that your activities are confined, exclusively to operating the Aira Fitness Business or another Aira Fitness Business under a franchise agreement with us; (iii) all assets used in the operation of the Aira Fitness Business are owned or leased by you; and (iv) you have and will maintain stop transfer instructions on your records against the transfer of equity securities except in compliance with this Agreement and will only issue securities upon the face of which bear a legend, in a form satisfactory to us, which references the transfer restrictions imposed by this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, partnership, or similar entity, they must make certain representations and warranties to Aira Fitness. These include confirming that the ownership information provided is complete and accurate and agreeing to update this information as needed.
Specifically, the franchisee must represent and warrant that it is properly organized, in good standing, and authorized to conduct business in both its state of incorporation and the state where the Aira Fitness Business is located. The franchisee must also warrant that its activities are limited exclusively to operating the Aira Fitness Business (or another Aira Fitness Business under a franchise agreement with Aira Fitness), as reflected in its governing documents.
Additionally, the franchisee must confirm that it owns or leases all assets used in the operation of the Aira Fitness Business. Finally, the franchisee must represent that it has stop transfer instructions on its records to prevent the transfer of equity securities, except in compliance with the Franchise Agreement, and that any issued securities will bear a legend referencing the transfer restrictions imposed by the agreement. These representations ensure that the franchisee is a legitimate and stable business entity focused on the Aira Fitness franchise.