How long does an Aira Fitness franchisee have to remedy a breach of covenant before it constitutes an event of default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
tten notice of breach. Your termination of this Agreement under this Section will not release or modify your post-term obligations under Section 11.D and Section 15 of this Agreement.
- D. Right to Operate Upon Default. In addition to our right to terminate this Agreement and not in lieu of such right or any other rights, in the event that you have not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, we may, at our option, enter upon the premises and exercise complete authority with respect to the operation of the Aira Fitness Business until such time as we determine that the default has been cured and that there is compliance with the requirements of this Agreement. You acknowledge and agree that our agent or other representative we designate may take over, control and operate the Business, that you shall pay us a fee for such management service, not to exceed fifteen percent (15%) of Gross Sales plus all travel expenses, room and board and other expenses actually incurred by such agent or representative so long as it shall be required to enforce compliance with this Agreement. You further acknowledge that if we temporarily operate the Business on your behalf under this Paragraph 14.D., you will indemnify us and hold us and our agent or representative harmless and respecting any and all claims arising out of our operation of the Business under this Paragraph 14.D.. Nothing herein shall require us to operate the Business when you are in default.
- E. Other Remedies. In addition to and without limiting our rights and remedies under this Agreement, any other agreement and applicable law, upon any events upon which we may terminate this Agreement under this Article 14, we may, at our sole option and upon delivery of written notice to you, elect to take any or all of the following actions without terminating this Agreement:
- (1) temporarily or permanently reduce the size of the Designated Area, in which even the restrictions upon Paragraph 2.C. will not apply in the geographic area that was removed from the Designated Area;
- (2) suspend online enrollment;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the standard cure period for a default is fourteen days. Specifically, if a franchisee has not cured a default under the Franchise Agreement within fourteen (14) days after receiving written notice of the default, Aira Fitness has the option to enter the premises and take control of the business operations. This control continues until Aira Fitness determines that the default has been resolved and the franchisee is compliant with the agreement.
However, there are exceptions to this standard cure period. If the default materially impairs the goodwill associated with Aira Fitness's marks, violates health, safety, or sanitation laws, or presents a health or safety hazard to members or the public, the franchisee has only 24 hours to cure the default after receiving written notice. Failure to remedy the situation within this 24-hour window results in immediate termination of the Franchise Agreement by Aira Fitness.
Furthermore, the FDD states that if a party's default is caused by a force majeure event (excluding obligations related to insurance, site acquisition, timely opening, and payments), the right to terminate the agreement is suspended for the duration of the force majeure. If the suspension lasts longer than six months and the default persists, either party can terminate the agreement with thirty days' notice. These stipulations highlight the importance of understanding the specific circumstances and nature of any default, as the cure period can vary significantly.
Finally, the document also mentions that any valid, applicable law or regulation prescribing permissible grounds, cure rights, or minimum periods of notice for termination of the franchise supersede any provision of the agreement that is less favorable to the franchisee. This implies that franchisees should be aware of local and state laws that may provide additional protections or longer cure periods than those specified in the Franchise Agreement.