What representation does the Aira Fitness franchisee make regarding their telephone obligations as of the assignment's effective date?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
f they had originally been issued to Aira Fitness. In addition, Franchisee agrees to hold the telephone companies harmless from any and all claims against them arising out of any actions or instructions by Aira Fitness regarding the assignment contemplated in this Assignment.
- Representation and Warranties of the Franchisee. Franchisee hereby represents, warrants and covenants to the AIRA Fitness that: (a) As of the effective date of the Assignment, all of Franchisee's obligations and indebtedness for telephone, telephone listing services and telephone directory advertisement services will be paid and current; (b) As of the date hereof, Franchisee has full power and legal right to enter into, execute, deliver and perform this Agreement; (c) This Agreement is a legal and binding obligation of Franchisee, enforceable in accordance with the terms hereof; (d) The execution, delivery and performance of this Assignment does not conflict with, violate, breach or constitute a default
under any contract, agreement or instrument to which Franchisee is a party or by which Franchisee is bound, and no consent of nor approval by any third party is required in connection herewith;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchisee makes specific representations and warranties regarding their obligations for telephone services upon assignment of the franchise agreement. As of the effective date of the assignment, the franchisee represents, warrants, and covenants to Aira Fitness that all obligations and indebtedness for telephone, telephone listing services, and telephone directory advertisement services are paid and current. This means the franchisee assures Aira Fitness that there are no outstanding bills or debts related to these telephone services at the time the assignment takes effect.
This representation is crucial for Aira Fitness because it ensures a smooth transition of the business's telephone operations in case of an assignment. If the franchisee's telephone accounts were not current, Aira Fitness could inherit those liabilities, potentially disrupting business operations and incurring unexpected costs. By requiring this representation, Aira Fitness aims to avoid such issues and maintain the continuity and stability of the Aira Fitness business.
Furthermore, the franchisee also represents that they have the power to assign and transfer their rights and interests in telephone numbers, listings, and directory advertisements, and that they have obtained all necessary consents for the assignment. This ensures that the franchisee has the legal authority to transfer these assets to Aira Fitness, preventing any legal complications or disputes during the assignment process. This is a fairly standard practice in franchising to ensure a clean transfer of assets and operational control.