For Aira Fitness, what information must the application for consent to transfer indicate?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Application for our consent to a transfer and tender of the right of first refusal provided for in Section 12.E must be made by submission of our form of application for consent to transfer, which must be accompanied by the documents (including a copy of the proposed purchase or other transfer agreement) or other required information.
The application must indicate whether you or an Owner proposes to retain a security interest in the property to be transferred.
No security interest may be retained or created, however, without our prior written consent and except upon conditions acceptable to us.
Any agreement used in connection with a transfer is subject to our prior written approval, which approval will not be withheld unreasonably.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the application for consent to transfer must be made using Aira Fitness's form and include required documents and information, such as a copy of the proposed purchase or transfer agreement. The application must also indicate whether the franchisee or an owner intends to retain a security interest in the property being transferred. However, retaining or creating any security interest requires Aira Fitness's prior written consent and must be on conditions acceptable to them. Any agreement used for the transfer is subject to Aira Fitness's prior written approval, which will not be unreasonably withheld.
This means that if a franchisee plans to sell their Aira Fitness franchise, they need to get approval from Aira Fitness. The application process involves submitting Aira Fitness's specific form, along with all necessary documents, including the sale agreement. Aira Fitness wants to know if the seller will still have any financial stake in the business after the sale, like a loan to the buyer secured by the franchise assets.
Aira Fitness needs to approve any security interest and the overall sale agreement. This protects Aira Fitness by ensuring that the new owner is fully committed and that the terms of the sale don't negatively impact the franchise's future success. The FDD states that Aira Fitness will not unreasonably withhold approval of the transfer agreement.
It is important for prospective franchisees to understand these transfer conditions, as failing to comply with them could void the transfer and lead to penalties. Franchisees should carefully review Section 12 of the franchise agreement and consult with an attorney to ensure they meet all requirements when planning to transfer their Aira Fitness business.