If an Aira Fitness franchisee sells equipment without consent, is that an event of default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as any of Franchisee's payment obligations under this Agreement remain outstanding, Franchisee shall not assign this Agreement or sell or transfer the Equipment without Franchisor's Affiliate 's prior written consent.
- 7.3 If you (i) fail to meet any of the deadlines set forth in the Development Schedule; (ii) fail to comply with any other term and condition of this Agreement; (iii) make or attempt to make a transfer, sale or assignment of this Agreement in violation of this Agreement; or (iv) you or other entity owned by the Owners are in default under any individual Franchise Agreement with us, or of any other agreement to which we are parties; any such event shall constitute a default under this Agreement.
Upon any such default, we, in our sole discretion, may do any one or more of the following:
(a) Terminate this Agreement and all rights granted hereunder to you without affording you any opportunity to cure the default effective immediately upon delivery to you of a written notice from us;
(b) Reduce the number of Aira Fitness Centers which you have the right to establish and open pursuant to this Agreement; or
(c) Exercise any other rights and remedies which we may have under applicable law.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a franchisee cannot sell or transfer equipment without the prior written consent of Franchisor's Affiliate. Specifically, this condition applies as long as any of the franchisee's payment obligations remain outstanding under the agreement.
If a franchisee attempts to make a transfer, sale, or assignment of the Franchise Agreement in violation of the agreement's terms, this constitutes a default. Upon such a default, Aira Fitness has the right to terminate the agreement and all rights granted to the franchisee immediately upon written notice, without providing an opportunity to cure the default.
In addition to termination, Aira Fitness can reduce the number of Aira Fitness Centers the franchisee is allowed to establish and open, or exercise any other rights and remedies available under applicable law. This means that selling equipment without the required consent could lead to serious consequences, including the loss of the franchise.