If the lease is deemed as security, what indebtedness does the Aira Fitness equipment secure?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
To secure the payment and performance by Debtor of all obligations and liabilities under the Franchise Agreement (such payment and performance of such obligations and liabilities collectively, "Obligations"), Debtor shall and hereby does grant, convey, assign and transfer to Secured Party, a security interest in and to the Franchise Agreement and all signs and other personal property bearing any of the Marks used at, located on or affixed to the Aira Fitness Business operated by Debtor, and all fitness equipment, other equipment, fixtures, furniture, inventory and supplies located at Debtor Aira Fitness Business, whether now owned or hereafter acquired by Debtor (the "Collateral").
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the fitness equipment secures the franchisee's obligations and liabilities under the Franchise Agreement. Specifically, the franchisee (referred to as "Debtor") grants a security interest to Aira Fitness Franchising LLC (referred to as "Secured Party") to ensure the payment and performance of all obligations outlined in the Franchise Agreement. This includes, but is not limited to, the payment of certain sums to Aira Fitness from time to time.
This security interest extends to the Franchise Agreement itself, all signs and personal property bearing Aira Fitness marks, and all fitness equipment, other equipment, fixtures, furniture, inventory, and supplies located at the Aira Fitness Business. This collateral, whether currently owned or acquired in the future, serves as security for the franchisee's adherence to the terms of the Franchise Agreement.
For a prospective Aira Fitness franchisee, this means that failure to meet the financial and operational obligations detailed in the Franchise Agreement could result in Aira Fitness claiming rights to the listed collateral, including the fitness equipment. It is crucial for franchisees to fully understand their obligations under the Franchise Agreement and the potential consequences of default, as their business assets are at risk.