What is the required amount of insurance against loss or damage to the Aira Fitness Pod?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Insurance. Franchisee shall obtain and maintain for the entire term of this Lease, at its own expense (as primary insurance for Franchisor's Affiliate and Franchisee), property damage and liability insurance and insurance against loss or damage to the Pod including, without limitation, loss by fire (including so-called extended coverage), theft, collision and such other risks of loss as are customarily insured against on the type of Pod leased hereunder and by businesses in which Franchisee is engaged, in such amounts, in such form and with such insurers as shall be reasonably satisfactory to Franchisor's Affiliate provided, however, that the amount of insurance against loss or damage to the Pod shall be the replacement value of the Pod. Each insurance policy will name Franchisee as an insured and Franchisor's Affiliate as an additional insured and loss payee thereof as Franchisor's Affiliate's interests may appear, shall contain crossliability endorsements and shall contain a clause requiring the insurer to give Franchisor's Affiliate at least 30 days prior written notice of any material alteration in the terms of such policy or of the cancellation thereof. Franchisee shall furnish to Franchisor's Affiliate a certificate of insurance or other evidence satisfactory to Franchisor's Affiliate that such insurance coverage is in effect, provided, however, that Franchisor's Affiliate shall be under no duty either to ascertain the existence of or to examine such insurance policy or to advise Franchisee in the event such insurance coverage shall not comply with the requirements hereof. Franchisee further agrees to give Franchisor's Affiliate prompt notice of any damage to, or loss of, the Pod, or any part thereof; all insurance covering loss or damage to the Pod shall contain a breach of warranty clause satisfactory to Franchisor's Affiliate. In the event Franchisee fails to obtain insurance in accordance with this provision, the Franchisor's Affiliate may, at its option, obtain the insurance or declare Franchisee's failure an event of default. In the event that Franchisor's Affiliate obtains insurance, it shall be entitled to prompt reimbursement from the Franchisee of the costs, including reasonable administrative costs, of doing so.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must secure and maintain property damage and liability insurance, including coverage against loss or damage to the Pod. This includes protection against fire, theft, collision, and other standard risks. The insurance policy must name the franchisee as the insured and Franchisor's Affiliate as an additional insured and loss payee.
The required insurance amount must be equal to the replacement value of the Pod. The insurance form and insurer must be reasonably satisfactory to Franchisor's Affiliate. The policy should also contain cross-liability endorsements and a clause requiring the insurer to provide Franchisor's Affiliate with at least 30 days' written notice of any material changes or cancellation.
Franchisees must provide Franchisor's Affiliate with a certificate of insurance as evidence of coverage. However, Franchisor's Affiliate is not obligated to verify the policy's compliance with these requirements or advise the franchisee. If a franchisee fails to obtain the necessary insurance, Franchisor's Affiliate has the option to obtain it and charge the franchisee for the costs incurred.