If Aira Fitness intends to cure a tenant's default and assume the lease, what must Aira Fitness do?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) In the event there is a default or violation by Tenant under the terms of the Lease, Landlord agrees to give Tenant and Aira Fitness written notice of such default or violation within a reasonable time after Landlord knows of its occurrence. Landlord agrees to provide Aira Fitness the written notice of default as written and on the same day Landlord gives it to Tenant. Although Aira Fitness is under no obligation to cure the default, Aira Fitness will notify Landlord it intends to cure the default and unilaterally assume Tenant's interest in the lease as provided in Paragraph 3(c). Aira Fitness will have an additional fifteen (15) days from the expiration of Tenant's cure period in which to cure the default or violation.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a tenant defaults on their lease, the landlord must provide written notice of the default to both the tenant and Aira Fitness. While Aira Fitness is not obligated to cure the default, if it chooses to do so and assume the tenant's interest in the lease, Aira Fitness must notify the landlord of its intent. Aira Fitness then has an additional fifteen days from the expiration of the tenant's cure period to correct the default or violation.
This clause protects Aira Fitness's interests by allowing them to maintain control over the location of a franchise even if the franchisee fails to meet their lease obligations. By stepping in and assuming the lease, Aira Fitness can ensure the continued operation of an Aira Fitness Business at that location, either by finding a new franchisee or operating it themselves.
For a prospective franchisee, this means that Aira Fitness has a vested interest in ensuring the location remains an Aira Fitness Business. However, it's important to note that Aira Fitness is not obligated to cure the default, so a franchisee should not rely on Aira Fitness to step in if they are struggling to meet their lease obligations. Franchisees should carefully review their lease and understand their responsibilities to avoid default.