factual

For Aira Fitness, if the franchisee enters into a maintenance contract with a party other than the equipment manufacturer, what is the franchisee required to do at the expiration of the lease?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

If you choose to lease the fitness equipment, at the end of each three year period, you must return the old equipment to the designated or approved supplier of the fitness equipment or otherwise per the terms of the equipment lease, which designated or approved supplier may be us or our affiliate.

You must then enter into a purchase agreement or lease for replacement equipment with a designated or approved, which may be us or our affiliate.

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 chooses to lease fitness equipment, they must return the old equipment to the designated or approved supplier of the fitness equipment at the end of each three-year period or otherwise per the terms of the equipment lease. The designated or approved supplier may be Aira Fitness or its affiliate. Following the return of the old equipment, the franchisee must then enter into a purchase agreement or lease for replacement equipment with a designated or approved supplier, which again may be Aira Fitness or its affiliate.

This requirement ensures that Aira Fitness maintains control over the quality and standards of the equipment used in its franchised locations. By mandating that franchisees use designated or approved suppliers for both the initial lease and any replacements, Aira Fitness can ensure consistency across all locations and maintain its brand image. This also gives Aira Fitness the right of first refusal to buy the equipment on the same terms and conditions as any potential buyer.

For a prospective franchisee, this means they may not have complete freedom in choosing equipment suppliers or maintenance providers. While using approved suppliers might ensure quality, it could also potentially limit options and possibly increase costs. It is important for potential franchisees to fully understand the terms of the equipment lease and any associated maintenance contracts, including any restrictions on suppliers and the process for returning or replacing equipment. Franchisees should also inquire about the potential costs associated with using designated suppliers and compare those costs to other options available in the market.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.