What remedies does the Franchisor's Affiliate have upon an event of default by an Aira Fitness franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Exercise any other right or remedy which may be available to it under the Uniform Commercial Code or any other applicable law;
(h) A cancellation hereunder shall occur only upon notice by Franchisor's Affiliate and only as to such items of Pod as Franchisor's Affiliate specifically elects to cancel and this Lease shall continue in full force and effect as to the remaining items, if any;
(i) In the event Franchisor's Affiliate in good faith believes the Pod to be in danger of misuse, abuse, or confiscation or to be in any other way threatened; or believes in good faith that the Pod is no longer sufficient or has declined or may decline in value; or believes in good faith for any other reason that the prospect of payment or performance has become impaired, Franchisor's Affiliate shall have the right, at its option, to either require additional collateral or declare the entire indebtedness immediately due and payable;
(j) If this Lease is deemed at any time to be one intended as security, Franchisee agrees that the Pod shall secure, in addition to the indebtedness set forth herein, indebtedness at any time owing by Franchisee to Franchisor's Affiliate.
No remedy referred to in this Paragraph is intended to be exclusive, but shall be cumulative and in addition to any other remedy referred to above or otherwise available to Franchisor's Affiliate at law or in equity.
No express or implied waiver by Franchisor's Affiliate of any default shall constitute a waiver of any other default by Franchisee or a waiver of any of Franchisor's Affiliate's rights.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, in the event of a default by the franchisee, the Franchisor's Affiliate has several remedies available. These remedies are cumulative and in addition to any other remedies available at law or in equity.
Specifically, the Franchisor's Affiliate can exercise any right or remedy available to it under the Uniform Commercial Code or any other applicable law. The Affiliate can also cancel specific items of the franchisee's Pod (likely referring to equipment) by providing notice, while the lease remains in effect for any remaining items. If the Franchisor's Affiliate believes the Pod is in danger of misuse, abuse, confiscation, or a decline in value, or that the prospect of payment or performance has become impaired, it has the right to require additional collateral or declare the entire indebtedness immediately due and payable.
Furthermore, if the lease is deemed to be one intended as security, the Pod will secure any indebtedness at any time owing by the franchisee to the Franchisor's Affiliate. It is important to note that no remedy is intended to be exclusive, and no waiver by the Franchisor's Affiliate of any default constitutes a waiver of any other default or rights.