When is a new franchise agreement required for an Aira Fitness franchise transfer, and what are the implications?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If the proposed transfer (or a series of transfers) would result in a change in control of the franchisee, the transferee must execute our then-current form of franchise agreement (provided that no initial franchise fee will be due there under); and each of transferee's owners execute our thencurrent form of personal guaranty and undertaking.
The parties acknowledge and agree that our then-current form of franchise agreement may be materially different than this Agreement and may include, among other things, different fees.
Additionally, in the event of a transfer, we have the unilateral right to change or modify the boundaries of the Designated Area under the new franchise agreement.
The Designated Area modification, if any, will be noted in the new franchise agreement issued with respect to the transfer.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a new franchise agreement is required if a proposed transfer, or a series of transfers, would result in a change in control of the franchisee. In this case, the transferee must execute Aira Fitness's then-current form of franchise agreement. The FDD specifies that no initial franchise fee will be due under the new agreement. Each of the transferee's owners must also execute Aira Fitness's then-current form of personal guaranty and undertaking.
This requirement has significant implications for potential transferees. The then-current form of the franchise agreement may be materially different than the original agreement. These differences could include different fees and obligations. Aira Fitness also has the unilateral right to change or modify the boundaries of the Designated Area under the new franchise agreement. Any modification to the Designated Area will be noted in the new franchise agreement.
Prospective franchisees should carefully consider these factors when planning for a potential transfer. Understanding the terms of the then-current franchise agreement is crucial, as it could significantly impact the operation and profitability of the Aira Fitness business after the transfer. It is important to note that the new agreement could impose different or more onerous obligations on the franchisee.