factual

What Illinois law governs the Aira Fitness Franchise Agreement and Multi-Unit Development Agreement?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.

Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)

What This Means (2025 FDD)

According to the 2025 Aira Fitness Franchise Disclosure Document, the Franchise Agreement and Multi-Unit Development Agreement are governed by Illinois law. The addendum for Illinois franchisees also states that any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, as per Section 4 of the Illinois Franchise Disclosure Act. However, the agreement may allow for arbitration to occur outside of Illinois.

This means that if an Aira Fitness franchisee in Illinois has a legal dispute with the company related to the Franchise Agreement or Multi-Unit Development Agreement, Illinois law will be applied. Furthermore, the franchisee cannot be forced to resolve disputes in a legal venue outside of Illinois, although arbitration outside of the state may be permitted.

It is also important to note that the Office of the Illinois Attorney General imposed a financial assurance requirement due to Aira Fitness's financial condition. This requires Aira Fitness to defer the payment of initial franchise/development fees until it has met its initial obligations to the franchisee and the franchisee has commenced business. Additionally, any attempt to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, protecting the franchisee's rights under Illinois law.

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.