If an Aira Fitness franchisee transfers equipment without consent, is that an event of default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
or directors verbally or physically assaults or abuses any officer, director, member, manager or employee of Franchisor or any of its Affiliates, or any Aira Fitnessfranchisee or employees of franchisees, after receiving a verbal or written warning against this conduct from Franchisor regarding this conduct.
- 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 Aira Fitness's 2025 Franchise Disclosure Document, attempting to make a transfer, sale, or assignment of the Franchise Agreement in violation of the agreement constitutes a default. This would include transferring equipment without the required prior written consent from Aira Fitness.
Upon such a default, Aira Fitness has the sole discretion to take actions such as terminating the agreement and all rights granted to the franchisee without any opportunity to cure the default, reducing the number of Aira Fitness Centers the franchisee has the right to establish, or exercising any other rights and remedies available under applicable law.
Furthermore, any attempted transfer by the franchisee without prior written consent from Aira Fitness or not in compliance with the terms of the agreement will be considered void. In such cases, Aira Fitness has the right to either default and terminate the agreement or collect from the franchisee and the guarantors a transfer fee equal to two times the transfer fee outlined in Section 12.C.
Therefore, a franchisee needs to be aware of the conditions regarding transfers to avoid potential default and subsequent penalties or termination of the franchise agreement.