What is the purpose of the agreement between Pure Gym Equipment LLC and the Aira Fitness franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
: (i) RECEIPT OF THE PURCHASED EQUIPMENT, (ii) THAT FRANCHISEE HAS HAD THE OPPORTUNITY TO INSPECT THE CONDITION OF THE PURCHASED EQUIPMENT, AND (iii) FRANCHISEE ACCEPTS THE CONDITION OF THE EQUIPMENT AS DELIVERED ON:
| Date: | |--------------| | Franchisee: | | By: | | (Print Name) |
EXHIBIT 1 TO PURCHASE AGREEMENT
Pod Specifications
EXHIBIT I POD PACKAGE LEASE
POD LEASE AGREEMENT
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's | |
|---|---|---|---|
| WITNESSETH | |||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular | |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell | |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. 200 Wheaton, IL 60189 Attn: Alissa Carter Verson | ||
| (b) | Franchisee's Address for Notice: With a copy of all notices going to: (Franchisee): | ||
| (c) | Concurrently with the execution of this Agreement a material inducement of Franchisor's Affiliate's obligations under this Agreement, , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of | |
| (d) | The period commencing on the Commencement Date of the Term and ending on the Expiration Date of the Term, is referred to in this Agreement as the "Term." | ||
| (e) | The "Commencement Date" of the Term shall be upon delivery of the Pod, the specifications of which are listed in Schedule 1 to this Agreement. |
- (f) The "Expiration Date" of the Term shall be the last day of the thirty-sixth (36th) full calendar month following the Commencement Date.
- (g) On the Effective Date, Franchisee shall pay to Franchisor a nonrefundable deposit equal to Twelve Thousand Dollars ("Nonrefundable Deposit Amount").
- (h) On the Effective Date, Franchisee shall pay to Franchisor's Affiliate a nonrefundable delivery fee equal to: ________________ ("Delivery Fee").
Lease.
- (a) Franchisor's Affiliate hereby agrees to lease to Franchisee and Franchisee hereby agrees to lease from Franchisor's Affiliate, subject to the terms of this Pod Lease Agreement (the "Pod Lease"), the Pod (together with all attachments, replacements, parts, substitutions, additions, repairs, accessions and accessories, incorporated therein and/or affixed, thereto) (the "Pod") described in any Schedule to Pod Lease (a "Schedule") subsequently executed by the parties hereto and incorporating the terms of this Pod Lease by reference therein (the "Lease").
- (b) The Pod is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Pod, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease.
- Term and Rent; Purchase Option. Franchisee shall pay as monthly rent for use of the Pod the amount described in Paragraph 1(h) above on the 1st day of each month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the due date thereof, Franchisee will pay on demand, as an additional late service and/or overhead charge, but not as interest, on amounts not paid when due, the greater of One Hundred Dollars ($100.00) or, in amount equal to eighteen percent (18%) of any such unpaid amount but in no event to exceed maximum lawful charges. TIME IS OF THE ESSENCE FOR THE PAYMENT OF RENT UNDER THIS PROVISION.
THIS LEASE IS NON-CANCELABLE FOR ITS ENTIRE TERM and Franchisee has no right of prepayment unless specifically granted to Franchisee in a written rider signed by the parties hereto. Upon expiration of the term of this Lease, and until return to Franchisor's Affiliate of the Pod and any and all other equipment leased hereunder, or until any purchase option price is paid, this Lease shall remain effective and shall become a month-to-month lease between the parties on the same terms and conditions, and the monthly rent then in effect shall be the rent payable during such month-to-month term under each applicable schedule ("Month-to-Month Period").
Franchisee may purchase the Pod at the end of the term and during any Month-to-Month Period of this Lease in an amount equal to Twenty Thousand Dollars ($20,000.00), provided that (a) Franchisee gives Franchisor's Affiliate written notice of Franchisee's intention to exercise the option at least 30 days prior to the exercise of such option; (b) Franchisee is not in default under any covenant or condition of this Lease, and (c) Franchisee pays all rent and other
charges due hereunder together with the full purchase price set forth above. Upon exercise of option and payment by Franchisee of the purchase price and all charges, Franchisor's Affiliate will execute and deliver a bill of sale for the Pod to Franchisee. THIS SALE WILL BE WITHOUT ANY REPRESENTATION OR WARRANTY OF ANY KIND BY OWNER, WHETHER EXPRESS OR IMPLIED IN FACT OR LAW and, Franchisee will accept Pod "AS IS" and "WHERE IS".
No Warranties; Consequential Damages Excluded.
- (a) Disclaimer of Warranties. Franchisee acknowledges that: Franchisor's Affiliate is not the manufacturer of the Pod nor the manufacturer's agent or representative nor a dealer therein; the Pod is of a size, design, capacity, description and manufacture selected by the Franchisee; Franchisee is satisfied that the Pod is suitable and fit for its purposes; and FRANCHISOR'S AFFILIATE HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY OR REPRESENTATION WHATSOEVER, EITHER EXPRESS OR IMPLIED, AS TO THE FITNESS, CONDITION, MERCHANTABILITY, DESIGN OR OPERATION OF THE POD, ITS FITNESS FOR ANY PARTICULAR PURPOSE, THE QUALITY OR CAPACITY OF THE MATERIALS IN THE POD OR WORKMANSHIP IN THE POD, FRANCHISOR'S AFFILIATE'S TITLE TO THE POD, NOR ANY OTHER REPRESENTATION OR WARRANTY WHATSOEVER; Franchisor's Affiliate shall not be liable to Franchisee for any loss, damage, or expense of any kind or nature caused, directly or indirectly, by the Pod or the use or maintenance thereof or the failure or operation thereof, or the repair, service or adjustment thereof, or by any delay or failure to provide any such maintenance, repairs, service or adjustment, or by any interruption of service or loss of use thereof or for any loss of business howsoever caused. Franchisor's Affiliate shall not be liable for any consequential damages as that term is used in U.C.C. Article 2A. No defect or unfitness of the Pod shall relieve Franchisee of the obligation to pay any installment of rent or any other obligation under this Lease. Franchisor's Affiliate shall have no obligation under this Lease in respect of the Pod and shall have no obligation to ship, deliver, assemble, install, erect, test, adjust or service the Pod. Franchisor's Affiliate agrees, so long as there shall not have occurred or be any Event of Default as defined in Paragraph 11 or event which with lapse of time or notice, or both, might become an Event of Default hereunder, that Franchisor's Affiliate will permit Franchisee, as Franchisee's sole and exclusive remedy hereunder, to enforce in Franchisee's own name and at Franchisee's sole expense any Supplier's or manufacturer's warranty or agreement in respect of the Pod to the extent that such warranty or agreement is assignable.
- (b) Exclusion of Consequential Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, FRANCHISOR'S AFFILIATE SHALL NOT, UNDER ANY CIRCUMSTANCES, BE LIABLE TO FRANCHISEE OR ANY THIRD PARTY, FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL OR EXEMPLARY DAMAGES ARISING OUT OF OR RELATED TO THE TRANSACTION CONTEMPLATED HEREUNDER, WHETHER IN AN ACTION BASED ON CONTRACT, TORT (INCLUDING
NEGLIGENCE OR STRICT LIABILITY) OR ANY OTHER LEGAL THEORY, INCLUDING, BUT NOT LIMITED TO, LOSS OF ANTICIPATED PROFITS, OR BENEFITS OF USE OR LOSS OF BUSINESS, REGARDLESS OF WHETHER SUCH LOSSES ARE CONSTRUED TO BE CONSEQUENTIAL, INCIDENTAL, SPECIAL OR EXEMPLARY DAMAGES, AND EVEN IF FRANCHISOR'S AFFILIATE IS APPRISED OF THE LIKELIHOOD OF SUCH DAMAGES OCCURRING.
**IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT EACH AND EVERY PROVISION OF THIS AGREEMENT WHICH PROVIDES FOR A LIMITATION OF LIABILITY, DISCLAIMER OF WARRANTIES OR EXCLUSION OF DAMAGES, IS INTENDED BY THE PARTIES TO BE SEVERABLE FROM ANY OTHER PROVISION AND IS A SEPARABLE AND INDEPENDENT ELEMENT OF RISK ALLOCATION AND IS INTENDED TO BE ENFORCED AS SUCH.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, there are two types of agreements between Pure Gym Equipment LLC (Franchisor's Affiliate) and the Aira Fitness franchisee. One agreement is for the lease of a pre-fabricated modular building referred to as a 'Pod' where the Aira Fitness franchise business is located. The other agreement is for the lease of fitness equipment for the Aira Fitness franchise business.
In both agreements, Pure Gym Equipment LLC is referred to as 'Franchisor's Affiliate' and is responsible for leasing either the Pod or the fitness equipment to the Aira Fitness franchisee. The franchisee, in turn, leases the Pod or fitness equipment from Franchisor's Affiliate. Both agreements also state that the franchisee must provide a guarantor who will execute a guaranty, ensuring the franchisee fulfills their obligations under the agreement.
Both agreements also include basic lease terms, such as the address for notices for both parties. The term of the agreement commences upon the delivery of the Pod or equipment, with the specifications of the Pod listed in Schedule 1 of the Pod lease agreement and the equipment listed on Schedule 1 of the equipment lease agreement. Pure Gym Equipment LLC, as Franchisor's Affiliate, retains the right to assign its rights under the agreement to a third party. However, the franchisee cannot assign the agreement or sell/transfer the equipment or Pod without prior written consent from Franchisor's Affiliate as long as any payment obligations remain outstanding.