What is the obligation regarding the execution of a Franchise Agreement when developing an Aira Fitness center?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Aira Fitness Center developed in the Development Area, a separate Franchise Agreement shall be executed and the individual franchise fee as prescribed hereunder shall be paid to us. It is understood and agreed by you that any and all Franchise Agreements executed in connection with Aira Fitness Centers developed by you within the Development Area under this Agreement are independent of this Agreement. The continued existence of any such Franchise Agreement shall not depend on the continuing existence of this Agreement. If any conflict shall arise in connection with this Agreement and any Franchise Agreement executed within the Development Area, the Franchise Agreement shall have precedence and superiority over this Agreement.
3.3 We will be obligated to execute the Franchise Agreement only if (i) you continue to maintain the requisite knowledge, experience, skills, and financial resources to perform as a franchisee, (ii) you are in compliance with this Agreement, including but not limited to compliance with the Development Schedule and in compliance with the in-term covenants set forth in Paragraph 6.4, (iii) you (and/or an affiliate) are in compliance any and all existing Franchise Agreements between us.
7.4 Upon termination or expiration of this Agreement, all remaining rights granted to you to establish and open Aira Fitness Centers under this Agreement for which a Franchise Agreement has not been executed shall automatically be null and void.
You shall have no right to establish, open or operate any Aira Fitness Centers for which a Franchise Agreement has not been executed by us prior to the date of termination or expiration of this Agreement.
- (a) By giving us written notice of your intention to begin development of the next Aira Fitness Center at least thirty (30) days before the execution of the Franchise Agreement for the applicable center; (b) By submitting to us a description of the proposed site, together with a letter of intent in a form approved by us or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site; (c) By executing the then-current form of the Franchise Agreement for the applicable center at the approved site and complying with its terms. We acknowledge that the franchisee for each Franchise Agreement may be a separate entity owned by your Owners.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a separate Franchise Agreement must be executed for each Aira Fitness Center developed. The individual franchise fee, as outlined in the agreement, must be paid for each location. These individual Franchise Agreements are independent of the Multi-Unit Development Agreement, meaning the continuation of one does not depend on the other. In case of conflicts between the Development Agreement and any individual Franchise Agreement, the Franchise Agreement takes precedence.
To begin developing an Aira Fitness Center, the developer must provide written notice of their intention at least thirty days before executing the Franchise Agreement. They must also submit a description of the proposed site, along with a letter of intent or other satisfactory evidence confirming favorable prospects for obtaining the site. The developer is required to execute the then-current form of the Franchise Agreement for the specific center at the approved location and comply with its terms. The franchisee for each Franchise Agreement can be a separate entity owned by the developer's owners.
Aira Fitness is only obligated to execute the Franchise Agreement if the developer maintains the necessary knowledge, experience, skills, and financial resources to operate as a franchisee. The developer must also be in compliance with the Development Agreement, including adherence to the Development Schedule and in-term covenants. Furthermore, the developer (or an affiliate) must be in compliance with any and all existing Franchise Agreements with Aira Fitness.
If the Development Agreement is terminated or expires, all remaining rights to establish and open Aira Fitness Centers for which a Franchise Agreement has not been executed become null and void. The developer loses the right to open any centers without a fully executed Franchise Agreement. However, Aira Fitness retains the right to establish a center themselves, through an affiliate, or grant the right to a third party within the Development Territory, provided there is no violation of territorial protections granted under existing individual Franchise Agreements.