If a franchisee is a partnership, does a change in the general partner constitute a transfer of the Aira Fitness franchise?

According to Aira Fitness's 2025 Franchise Disclosure Document, a change in the general partner of a franchisee that operates as a general, limited, or other partnership entity is considered a transfer of the franchise. This means that if an Aira Fitness franchisee is structured as a partnership and there is a change in the general partner, the franchisee must comply with the transfer conditions outlined in Section 12 of the franchise agreement. These conditions include offering Aira Fitness the right of first refusal, obtaining Aira Fitness's prior written consent, paying a transfer fee (if applicable), and satisfying other transfer requirements.

For a prospective Aira Fitness franchisee, this provision highlights the importance of carefully considering the partnership structure and the potential implications of changes in the general partners. Any such change triggers the transfer process, which involves additional steps and potential costs. The transfer fee is $5,000 if the transferee is an existing Aira Fitness franchisee; otherwise, the fee equals the then-current initial franchise fee.

Furthermore, Aira Fitness requires that the transferee meet all of its then-current requirements for franchisees. The franchisee must also ensure that all outstanding amounts owed to Aira Fitness, its affiliates, suppliers, or landlords are paid in full. The franchisee must also provide all required reports and comply with modernization requirements. All parties involved, including owners and guarantors, must execute transfer documents and provide a general release of claims. The transferee must also comply with Aira Fitness's training requirements.

In addition, Aira Fitness has the right to request financial reports and data related to the Aira Fitness business to evaluate the proposed transfer. If the transfer results in a change of control, the transferee must execute Aira Fitness's current form of franchise agreement and personal guaranty. Aira Fitness also retains the right to modify the boundaries of the designated area under the new franchise agreement. These stipulations ensure that Aira Fitness maintains control over the franchise and that any changes in ownership or management meet its standards and requirements.