What are the implications of operating an Aira Fitness business during an Interim Period?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Interim Period.
If you continue to accept the benefits of this Agreement after the expiration of the initial term but do not complete the requirements in Section 4.B, then at our sole option, this Agreement may be treated as (i) expired as of the date of the expiration and you will be operating without a franchise or license to do so and in violation of our rights to the Marks and System; or (ii) continued on a month-to-month basis (an "Interim Period") and all your obligations will remain in full force and effect during the Interim Period as if the Agreement had not expired.
Each Interim Period expires at the end of each calendar month unless this Agreement is continued as provided in this Section.
The Interim Period does not create any new franchise rights and upon expiration of the final Interim Period, you will be bound by all post-term obligations as provided in this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, operating during an Interim Period carries specific implications for franchisees. If a franchisee continues to operate after the initial agreement term expires but does not meet the renewal requirements, Aira Fitness has the option to treat the agreement as either expired, meaning the franchisee is operating without a license and in violation of Aira Fitness's rights, or to continue the agreement on a month-to-month basis, known as an "Interim Period."
During this Interim Period, all obligations of the franchisee remain in full effect as if the original agreement had not expired. Each Interim Period lasts only until the end of each calendar month unless Aira Fitness decides to continue the agreement. It is important to note that the Interim Period does not grant any new franchise rights to the franchisee.
Upon the expiration of the final Interim Period, the franchisee is still bound by all post-term obligations as outlined in the original agreement. This means that even after the Interim Period ends, the franchisee must adhere to the restrictions and requirements that apply after the termination or expiration of the franchise agreement, such as non-compete clauses or confidentiality agreements.