If the Aira Fitness franchisee replaces the equipment, who gets the title to the replacement equipment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
similarly situated new Aira Fitness Businesses. For instance, we require that you replace all fitness equipment within three years of the Effective Date of this Agreement. If you choose to purchase the fitness equipment, at the end of each three year period, you may offer your old equipment to anyone, but we have the right of first refusal to buy the equipment on the same terms and conditions as any potential buyer. You must give us seven (7) days' written notice of any potential sale of your old equipment and a reasonable opportunity to match any offer you have that you intend to accept. We are under no obligation to actually exercise our right of first refusal. 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.
- H. Relocation. You may not relocate your Aira Fitness Business without our prior written consent.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the ownership of replacement equipment depends on whether the franchisee purchases or leases the equipment. Aira Fitness requires franchisees to replace all fitness equipment within three years of the Effective Date of the Franchise Agreement. If the franchisee chooses to purchase the fitness equipment, they may offer their old equipment to anyone at the end of each three-year period; however, Aira Fitness retains the right of first refusal to buy the equipment on the same terms as any potential buyer. The franchisee must provide Aira Fitness with seven days' written notice of any potential sale and a reasonable opportunity to match the offer.
Conversely, if the franchisee chooses to lease the fitness equipment, they must return the old equipment to the designated or approved supplier at the end of each three-year period, as per the terms of the equipment lease. This supplier may be Aira Fitness or its affiliate. Following the return of the leased equipment, the franchisee must enter into a new purchase agreement or lease for replacement equipment with a designated or approved supplier, which again may be Aira Fitness or its affiliate.
In the case of leasing, the equipment remains the property of Aira Fitness's affiliate. Specifically, the FDD states that the equipment "is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Equipment, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease."
This distinction between purchasing and leasing is crucial for prospective franchisees to understand, as it directly impacts their rights and obligations regarding equipment ownership and disposal. Franchisees should carefully consider the financial implications of each option and the long-term impact on their business operations.