What obligations remain in effect for an Aira Fitness franchisee during the Interim Period?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you continue to accept the benefits of this Agreement after the expiration of the initial term but do not complete the requirements in Section 4.B, then at our sole option, this Agreement may be treated as (i) expired as of the date of the expiration and you will be operating without a franchise or license to do so and in violation of our rights to the Marks and System; or (ii) continued on a month-to-month basis (an "Interim Period") and all your obligations will remain in full force and effect during the Interim Period as if the Agreement had not expired.
Each Interim Period expires at the end of each calendar month unless this Agreement is continued as provided in this Section.
The Interim Period does not create any new franchise rights and upon expiration of the final Interim Period, you will be bound by all post-term obligations as provided in this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee continues to operate after the initial term's expiration without fulfilling renewal requirements, Aira Fitness has the option to treat the agreement as either expired or continued on a month-to-month basis, known as an "Interim Period."
During this Interim Period, all of the franchisee's obligations remain in full force and effect, as if the agreement had not expired. This means the franchisee must continue to adhere to all operational standards, payment schedules, and other requirements outlined in the original franchise agreement.
It is important to note that the Interim Period does not grant any new franchise rights. Upon the expiration of the final Interim Period, the franchisee is still bound by all post-term obligations as detailed in the agreement. This ensures that even during this temporary extension, the Aira Fitness brand and system are protected, and the franchisee remains accountable for their actions.