If the Pod lease is deemed as security, what other indebtedness does the Pod secure for Aira Fitness?

According to Aira Fitness's 2025 Franchise Disclosure Document, the Pod lease, if deemed as security, secures the franchisee's payment and performance of all obligations and liabilities under the Franchise Agreement. This means that the security interest extends to all the franchisee's duties and financial responsibilities outlined in the Franchise Agreement with Aira Fitness.

This security interest ensures that Aira Fitness has a claim on the franchisee's assets (potentially including the Pod itself) if the franchisee fails to meet their obligations. These obligations could include, but are not limited to, the payment of franchise fees, royalties, and adherence to operational standards. The franchisee is essentially using their rights and interests in the specified collateral as a guarantee that they will fulfill their contractual duties to Aira Fitness.

For a prospective Aira Fitness franchisee, this implies a significant financial commitment. Before entering into the agreement, it is crucial to fully understand all obligations under the Franchise Agreement, as failure to meet these obligations could result in Aira Fitness exercising its rights under the security agreement, potentially leading to the loss of assets. It is advisable for potential franchisees to seek legal counsel to fully understand the implications of this security interest and how it affects their business and personal assets.