If an Aira Fitness franchisee is a corporation, what must they represent regarding their organization and standing?
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 Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, partnership or similar entity, they must represent and warrant that their ownership is completely and accurately listed on the Summary Page. They must also provide Aira Fitness with updated ownership information to ensure it remains current, complete, and accurate at all times.
In addition, the franchisee must represent and warrant that they are duly organized, in good standing, and authorized to conduct business in both their state of incorporation and the state where the Aira Fitness Business is located. The franchisee's activities and governing documents must exclusively confine their operations to running the Aira Fitness Business or another Aira Fitness Business under a franchise agreement with Aira Fitness.
Furthermore, all assets used in the operation of the Aira Fitness Business must be either owned or leased by the franchisee. The franchisee must also maintain stop transfer instructions on their records to prevent the transfer of equity securities, except when in compliance with the Franchise Agreement. Any securities issued must bear a legend, in a form satisfactory to Aira Fitness, referencing the transfer restrictions imposed by the Agreement. These representations and warranties are crucial for Aira Fitness to ensure the stability, legal compliance, and proper management of its franchise network.