Who is named as an insured and loss payee on the Aira Fitness franchisee's insurance policy for the Pod?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Each insurance policy will name Franchisee as an insured and Franchisor's Affiliate as an additional insured and loss payee thereof as Franchisor's Affiliate's interests may appear, shall contain crossliability endorsements and shall contain a clause requiring the insurer to give Franchisor's Affiliate at least 30 days prior written notice of any material alteration in the terms of such policy or of the cancellation thereof. Franchisee shall furnish to Franchisor's Affiliate a certificate of insurance or other evidence satisfactory to Franchisor's Affiliate that such insurance coverage is in effect, provided, however, that Franchisor's Affiliate shall be under no duty either to ascertain the existence of or to examine such insurance policy or to advise Franchisee in the event such insurance coverage shall not comply with the requirements hereof. Franchisee further agrees to give Franchisor's Affiliate prompt notice of any damage to, or loss of, the Pod, or any part thereof; all insurance covering loss or damage to the Pod shall contain a breach of warranty clause satisfactory to Franchisor's Affiliate. In the event Franchisee fails to obtain insurance in accordance with this provision, the Franchisor's Affiliate may, at its option, obtain the insurance or declare Franchisee's failure an event of default. In the event that Franchisor's Affiliate obtains insurance, it shall be entitled to prompt reimbursement from the Franchisee of the costs, including reasonable administrative costs, of doing so.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchisee is named as the insured on the insurance policy for the Pod. Additionally, Franchisor's Affiliate is named as an additional insured and loss payee.
This means that in the event of a loss or damage to the Pod, insurance payments would be made to Franchisor's Affiliate, protecting their financial interest in the equipment. The franchisee is responsible for securing and maintaining this insurance coverage throughout the lease term.
It is important for prospective Aira Fitness franchisees to understand these insurance requirements and factor the costs into their business plan. Failure to maintain adequate insurance can result in the Franchisor's Affiliate obtaining insurance on the franchisee's behalf and billing the franchisee for the costs or declaring an event of default.