What remedies does the Secured Party have upon an Event of Default related to an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) if Debtor abandons, surrenders or transfers control of the operation of the Aira Fitness Business without Secured Party's prior written consent; or
- (e) if Debtor is a corporation, limited liability company, partnership, joint venture or other legal entity, any action is taken which purports to merge, consolidate, dissolve or liquidate Debtor without the prior written consent of Secured Party.
- 3.2. Remedies. Upon the occurrence of an Event of Default, all amounts payable to Secured Party shall become immediately due and payable and Secured Party shall have all the rights and remedies of a secured party under the Uniform Commercial Code as in effect in the state or states in which the Collateral may be located, including, but not limited to, the right to enter upon the Aira Fitness Business peaceably and remove all Collateral. Secured Party shall give Debtor reasonable notice of the time and place of any public or private sale or other intended disposition of all or any particular Collateral, as the case may be. Debtor agrees that the requirement of reasonable notice shall be met if notice is mailed to Debtor at its address first above written not less than five (5) business days prior to the sale or other disposition. Expenses of retaking, holding, preparing for sale, selling or the like, shall include, without limitation, Secured Party's reasonable attorneys' fees and other legal expenses. Secured Party's rights and remedies, whether pursuant hereto or pursuant to the Illinois Uniform Commercial Code or any other statute or rule of law conferring rights similar to those conferred by the Illinois Uniform Commercial Code, shall be cumulative and not alternative.
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, all amounts payable to the Secured Party become immediately due. Aira Fitness, as the Secured Party, has all the rights and remedies of a secured party under the Uniform Commercial Code (UCC) in the state where the collateral is located. This includes the right to enter the Aira Fitness Business peacefully and remove all collateral.
Aira Fitness must provide the franchisee (Debtor) with reasonable notice of any public or private sale or disposition of the collateral. The franchise agreement specifies that a notice mailed to the franchisee at least five business days prior to the sale or disposition is considered reasonable. The expenses of retaking, holding, preparing for sale, and selling the collateral include Aira Fitness's reasonable attorney's fees and other legal expenses.
The rights and remedies available to Aira Fitness are cumulative and not alternative, meaning they can use one or more remedies simultaneously. The agreement is governed by Illinois law, without regard to its conflict of laws principles. An Event of Default is defined as the failure of the franchisee to pay, observe, and perform any of the obligations when due; franchisee becoming insolvent, committing an act of bankruptcy, filing a voluntary petition in bankruptcy, or an involuntary petition in bankruptcy is filed; franchisee losing possession or the right of possession of all or a significant part of the Aira Fitness Business through condemnation or casualty and the Aira Fitness Business is not relocated or reopened as required by the Franchise Agreement; franchisee abandoning, surrendering or transferring control of the operation of the Aira Fitness Business without Secured Party's prior written consent; or franchisee is a corporation, limited liability company, partnership, joint venture or other legal entity, any action is taken which purports to merge, consolidate, dissolve or liquidate Debtor without the prior written consent of Secured Party.