Is Aira Fitness obligated to operate my Aira Fitness business if I am in default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
(3) suspend our facilitation of the member billing process;
(2) refuse to provide any operation support that this Agreement required or we have elected to provide or suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement; and/or
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness is not required to operate the franchisee's business if the franchisee is in default. However, Aira Fitness has the option to enter the premises and take control of the Aira Fitness business if the franchisee fails to correct a default within 14 days of receiving written notice.
If Aira Fitness chooses to operate the business, they have complete authority over its operation until they determine the default has been resolved and the franchisee is compliant with the franchise agreement. The franchisee will be required to pay Aira Fitness a management fee for this service, which will not exceed 15% of Gross Sales, in addition to all travel expenses, room and board, and other expenses incurred by the agent or representative managing the business.
Furthermore, the franchisee must indemnify Aira Fitness and its representatives against any claims arising from their operation of the business during the period of default. This arrangement allows Aira Fitness to protect its brand and system standards, while placing the financial burden and risk of the temporary operation on the defaulting franchisee.