What is the prohibited action regarding statements made during mediation related to the Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Any unappealed decision of the arbitrator(s) will be final and binding on all parties to the dispute; however, the arbitrator(s) shall have no authority to: (i) stay the effectiveness of any pending termination of this Agreement; (ii) assess punitive or exemplary damages; (iii) certify a class or consolidate an action, or (iv) make any award which extends, modifies or suspends any lawful term of this Agreement or any reasonable standard of business performance that we set.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the arbitrator(s) are prohibited from taking certain actions during dispute resolution. Specifically, the arbitrator(s) do not have the authority to stay the effectiveness of any pending termination of the Franchise Agreement. They cannot assess punitive or exemplary damages, certify a class or consolidate an action, or make any award which extends, modifies, or suspends any lawful term of the agreement or any reasonable standard of business performance that Aira Fitness sets.
This means that if Aira Fitness decides to terminate a franchise agreement, the arbitrator cannot prevent that termination from taking effect while the dispute is being resolved. The arbitrator is also restricted from awarding damages intended to punish Aira Fitness or serve as an example. Furthermore, the arbitration must be handled on an individual basis, and the arbitrator cannot authorize a class action or combine the case with other similar claims.
Finally, the arbitrator's decision must adhere to the original terms of the franchise agreement and cannot alter or suspend any of those terms or Aira Fitness's established business performance standards. This ensures that the arbitrator's role is limited to interpreting the existing agreement and resolving the specific dispute, rather than imposing new obligations or changing the fundamental nature of the franchise relationship. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's rights and maintain consistency across the franchise system.