factual

If an Aira Fitness franchisee sublets equipment without consent, is that an event of default?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

(e) **No Assignment or Sublease by Franchisee.

FRANCHISEE SHALL NOT ASSIGN OR IN ANY WAY DISPOSE OF ALL OR ANY PART OF ITS RIGHTS OR OBLIGATIONS UNDER THIS LEASE OR ENTER INTO ANY SUBLEASE OF ALL OR ANY PART OF THE EQUIPMENT WITHOUT THE PRIOR WRITTEN CONSENT OF FRANCHISOR'S AFFILIATE.

ANY ATTEMPTED ASSIGNMENT IN BREACH OF THIS PROVISION SHALL BE NULL AND VOID.**

  • **10.

Use of Equipment.** So long as no Event of Default (as defined in 11., below) shall have occurred, Franchisee shall be entitled to possession and use of the Equipment for the term of this Lease in its lawful business in accordance with the provisions of this Lease.

Source: Item 23 — **RECEIPTS (FDD pages 59–254)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee is prohibited from subleasing equipment without prior written consent from the franchisor's affiliate. Specifically, the FDD states that the franchisee cannot assign or dispose of rights or obligations under the lease, or sublease equipment, without this consent. Any attempt to do so is considered null and void.

Furthermore, the FDD outlines 'Events of Default,' which are circumstances that allow the franchisor to take action against the franchisee. While the excerpt does not explicitly state that subletting equipment without consent is an 'Event of Default,' it does state that so long as no Event of Default has occurred, the franchisee is entitled to possession and use of the Equipment for the term of this Lease in its lawful business in accordance with the provisions of this Lease.

Given the explicit prohibition and the consequences tied to 'Events of Default,' a prospective Aira Fitness franchisee should seek clarification from the franchisor regarding whether subletting equipment without consent constitutes such an event. Understanding the specific ramifications of violating this clause is crucial for compliance and avoiding potential penalties or termination of the franchise agreement.

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.