Where will mediation take place for disputes related to the Aira Fitness franchise agreement?
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.
Any unappealed decision of the arbitrator(s) will be final and binding on all parties to the dispute; however, the arbitrator(s) shall have no authority to: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; (iii) certify a class or consolidate an action, or (iv) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set. A judgment may be entered upon the arbitration award by any court of competent jurisdiction.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, any disputes arising from the franchise agreement must be submitted to binding arbitration under the Federal Arbitration Act. The arbitration will be conducted according to the rules and procedures of the American Arbitration Association (AAA). The location for this arbitration is specified as the Chicago, Illinois metropolitan area.
This means that if a franchisee has a dispute with Aira Fitness, such as disagreements over the terms of the agreement, issues related to the lease of the business location, or disputes about Aira Fitness's standards, the franchisee will be required to resolve the issue through arbitration in Chicago. This is a significant point for prospective franchisees to consider, as it dictates where they would need to travel and potentially hire local representation if a dispute arises.
It is also important to note that the arbitrator must have at least five years of experience in franchising or franchise law, ensuring some level of expertise in the specific legal context of the franchise agreement. The arbitrator's decision is final and binding, but they cannot, for example, stay a pending termination of the agreement or award punitive damages. This arbitration clause also prevents franchisees from participating in class action lawsuits against Aira Fitness, requiring them to pursue claims individually.