For Aira Fitness, what is the procedure if a legal representative desires to succeed to the franchise interest?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of your insolvency or the filing of any petition by or against you under any provisions of any bankruptcy or insolvency law, if your legal representative, successor, receiver or trustee desires to succeed to your interest in this Agreement or the business conducted hereunder, such person first must notify us, tender the right of first refusal provided for in Section 12.E, and if we do not exercise such right, must apply for and obtain our consent to the transfer, pay the transfer fee provided for in Section 12.C, if applicable, and satisfy the transfer conditions described in Section 12.C. In addition, you or the transferee must pay the attorneys' fees and costs that we incur in any bankruptcy or insolvency proceeding pertaining to you.
You may not place in, on or upon the location of the Aira Fitness Business, or in any communication media or any form of advertising, any information relating to the sale of the Aira Fitness Business or the rights under this Agreement, without our prior written consent.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a franchisee becomes insolvent or files for bankruptcy and a legal representative, successor, receiver, or trustee wants to take over the franchise, they must first notify Aira Fitness. This notification must include tendering the right of first refusal, as detailed in Section 12.E of the franchise agreement.
If Aira Fitness declines to exercise its right of first refusal, the legal representative must then apply for and obtain Aira Fitness's consent to the transfer. This involves paying the transfer fee, if applicable, as outlined in Section 12.C, and fulfilling all transfer conditions also described in Section 12.C.
Additionally, the franchisee or the transferee is responsible for covering all attorneys' fees and costs that Aira Fitness incurs during any bankruptcy or insolvency proceedings related to the franchisee. The franchisee is also prohibited from advertising the sale of the Aira Fitness Business or the rights under the Franchise Agreement without prior written consent from Aira Fitness.