What law governs arbitration proceedings between Aira Fitness and the Developer?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as qualified below, any dispute between you and us and any of our or your affiliates, officers, directors, shareholders, members, guarantors, employees or owners arising under, out of, in connection with or in relation to this Agreement, any lease for the Aira Fitness Business or Authorized Location, the parties' relationship, the Aira Fitness Business, our Standards, or the scope or validity of the arbitration obligations under this Section must be submitted to binding arbitration under the authority of the Federal Arbitration Act and must be arbitrated in accordance with the then-current rules and procedures and under the auspices of the American Arbitration Association ("AAA"). Any arbitration must be on an individual basis, and not as part of a consolidated, common, or class action, and you and/or your Owners waive any right to proceed on a consolidated, common, or class basis. Multiparty arbitration is specifically excluded, and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or other proceeding involving third parties. In the event a court or arbitrator determines that this exclusion of multiparty arbitration (including class arbitration) is unenforceable, then this entire commitment to arbitrate will be null and void and the parties must submit all claims to the jurisdiction of the courts. Arbitration shall take place in the Chicago, Illinois metropolitan area. The arbitrators must follow the law and not disregard the terms of this Agreement. Any arbitrator must have at least five years' experience in franchising or in franchise law.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Federal Arbitration Act governs arbitration proceedings between Aira Fitness and the Developer. Specifically, any dispute arising under, out of, in connection with, or in relation to the Franchise Agreement, any lease for the Aira Fitness Business, the parties' relationship, Aira Fitness's standards, or the scope or validity of the arbitration obligations must be submitted to binding arbitration. This arbitration must occur under the authority of the Federal Arbitration Act.
The rules and procedures of the American Arbitration Association (AAA) will be followed during arbitration. The arbitration is to be conducted on an individual basis, explicitly excluding consolidated, common, or class actions. This means a franchisee cannot join with other franchisees to bring a single, collective claim against Aira Fitness. The location for arbitration is the Chicago, Illinois metropolitan area.
Furthermore, the arbitrator is required to follow the law and cannot disregard the terms outlined in the Franchise Agreement. The arbitrator must possess a minimum of five years of experience in franchising or franchise law. The document also specifies certain limitations on the arbitrator's authority, such as not being able to stay the effectiveness of any pending termination of the agreement or assess punitive damages. These stipulations ensure that the arbitration process remains focused on the specifics of the agreement and prevents overly broad or punitive outcomes.