Can Aira Fitness reduce the number of Aira Fitness Centers a developer can open if the developer defaults?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
r this Agreement. Upon any such default, we, in our sole discretion, may do any one or more of the following:
- (a) Terminate this Agreement and all rights granted hereunder to you without affording you any opportunity to cure the default effective immediately upon delivery to you of a written notice from us;
- (b) Reduce the number of Aira Fitness Centers which you have the right to establish and open pursuant to this Agreement; or
- (c) Exercise any other rights and remedies which we may have under applicable law.
- 7.4 Upon termination or expiration of this Agreement, all remaining rights granted to you to establish and open Aira Fitness Centers under this Agreement for which a Franchise Agreement has not been executed shall automatically be null and void. You shall have no right to establish, open or operate any Aira Fitness Centers for which a Franchise Agreement has not been executed by us prior to the date of termination or expiration of this Agreement. Upon termination or expiration of this Agreement, we will have the right to establish ourselves or through an affiliate or grant to a third party the right to establish a Aira Fitness Center within the Development Territory as long as there is no violation of the territorial protections granted to you under existing individual Franchise Agreements.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a developer defaults on the Development Agreement, Aira Fitness has the option to reduce the number of Aira Fitness Centers the developer is authorized to establish and open. This action is at the sole discretion of Aira Fitness. This is one of several remedies Aira Fitness can pursue in the event of a default.
Specifically, a default occurs if the developer fails to meet the deadlines outlined in the Development Schedule, fails to comply with any other terms of the Development Agreement, attempts to transfer or assign the agreement without permission, or defaults on any individual Franchise Agreement or other agreement with Aira Fitness. Any of these events allows Aira Fitness to take action.
This provision is important for potential Aira Fitness developers to understand, as failure to meet the obligations of the Development Agreement can result in a reduction of the number of franchises they are allowed to open. This could impact their investment and potential revenue. It is also important to note that Aira Fitness has other options besides reducing the number of centers, including terminating the agreement altogether or pursuing other legal remedies.