Can Aira Fitness prohibit or cancel memberships that expire beyond the term of the Aira Fitness franchise?

According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness retains the right to prohibit or cancel memberships that a franchisee sells if those memberships extend beyond the expiration date of the franchise term, including any exercised renewal term. This provision allows Aira Fitness to manage the transition of customers at the end of a franchise agreement.

This policy has significant implications for a prospective Aira Fitness franchisee. If memberships extend beyond the franchise term, Aira Fitness can cancel them. The franchisee is then responsible for all refunds or liabilities to members resulting from these cancellations. This could create a financial burden for the franchisee as the franchise term ends.

This type of clause is not uncommon in franchise agreements, as it protects the franchisor's interests in maintaining control over the customer base and brand integrity. However, it is crucial for a potential Aira Fitness franchisee to understand the financial responsibility they assume for membership cancellations and to factor this into their business planning and financial projections. Franchisees should carefully manage membership sales near the end of their term to minimize potential liabilities.