Can Aira Fitness require franchisees to participate in an insurance plan established for the benefit of the System?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must be written by an insurance company or companies satisfactory to us (generally, companies with an AM Best rating of A- or better). We may require you to purchase insurance from a supplier we have approved. You must participate in any insurance plan we establish for the benefit of the System and pay all required premiums due there under, unless we agree otherwise in writing.
The required insurance coverage must commence as of the date the building lease or building purchase agreement has been signed for your Authorized Location. You must deliver to us at commencement and thereafter annually or at our request a proper certificate, endorsement, or other documentation as we require evidencing the existence of such insurance coverage and your compliance with the provisions of this subparagraph. The insurance certificate or endorsement must show all required Additional Insureds (as noted in (xii) and (xiii) above) and provide that we will be given thirty (30) days' prior written notice of material change in or termination or cancellation of the policy. We also may request copies of all policies. We may modify the required minimum limits from time to time and by written notice to you, as conditions require, to reflect changes in relevant circumstances, industry standards, experiences in the AIRA FITNESS system, standards of liability and higher damage awards. If you do not procure and maintain the insurance coverage required by this Agreement, we have the right, but not the obligation, to procure insurance coverage and to charge the same to you, together with the actual costs and expenses we incur in doing so, payable by you immediately upon notice.
You acknowledge that the foregoing minimum insurance requirements do not constitute advice or a representation that such coverages are necessary or adequate to protect you from losses in connection with the Aira Fitness Business. Nothing in this Agreement prevents or restricts you from acquiring and maintaining insurance with higher policy limits or lower deductibles than we require.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness may require franchisees to participate in an insurance plan established for the benefit of the System. Franchisees must also pay all required premiums unless Aira Fitness agrees otherwise in writing.
The insurance coverage must begin when the building lease or purchase agreement is signed for the authorized location. Franchisees must provide Aira Fitness with proof of insurance coverage at commencement and annually, or upon request. This proof must be in the form of a certificate, endorsement, or other documentation. The certificate or endorsement must include all required Additional Insureds and provide Aira Fitness with 30 days' prior written notice of any material changes, termination, or cancellation of the policy. Aira Fitness can also request copies of all policies.
Aira Fitness may modify the required minimum insurance limits as needed by providing written notice to the franchisee. These changes will reflect conditions, industry standards, experiences within the Aira Fitness system, liability standards, and higher damage awards. If a franchisee fails to maintain the required insurance coverage, Aira Fitness has the right, but not the obligation, to procure insurance and charge the franchisee for the costs and expenses incurred, payable immediately upon notice.
The FDD also states that the minimum insurance requirements do not constitute advice or a representation that such coverages are necessary or adequate to protect franchisees from losses related to their Aira Fitness Business. Franchisees are not restricted from acquiring and maintaining insurance with higher policy limits or lower deductibles than required by Aira Fitness.