For Aira Fitness, is a lease of the business considered a transfer?

According to Aira Fitness's 2025 Franchise Disclosure Document, a lease of the business is considered a transfer. Specifically, any arrangement where the franchisee turns over all or part of the daily operation of the business to a person or entity who shares in the losses or profits of the business in a manner other than as an employee will be considered a transfer. This definition includes a lease. Therefore, franchisees must comply with the right of first refusal, consent, transfer fee, and other transfer conditions outlined in Section 12 of the franchise agreement.

This means that if an Aira Fitness franchisee wants to lease their business to someone else, even temporarily, it is treated as a transfer of the franchise. The franchisee must first offer Aira Fitness the right of first refusal to acquire the agreement. If Aira Fitness declines, the franchisee must obtain Aira Fitness's written consent, pay the applicable transfer fee, and satisfy all other transfer conditions.

This provision is important because it gives Aira Fitness control over who operates an Aira Fitness location and ensures that any new operator meets their standards. It also protects the brand's integrity and consistency across all locations. The transfer conditions likely include requirements related to the transferee's financial qualifications, experience, and training, as well as the execution of necessary documents, including a general release of claims.

For a prospective Aira Fitness franchisee, this means that leasing the business is not a simple matter. It requires navigating the transfer process, which involves fees, approvals, and potential training for the new operator. Franchisees should carefully consider these requirements before entering into any lease agreement to avoid violating the franchise agreement and potentially facing penalties or termination.