Does Aira Fitness have any restrictions on assigning its contract?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Paragraph 12(F) of the Franchise Agreement on Transfer by Franchisor shall be amended by the addition of the following language to the original language that appears herein:
"However, Franchisor shall not assign its rights and obligations to a transferee unless in its reasonable judgment, the transferee is able to fulfill the Franchisor's obligations under its Franchise Agreements."
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, there are some restrictions regarding the transfer of the franchise agreement. Specifically, for franchisees operating in New York, Paragraph 12(F) of the Franchise Agreement, which addresses transfer by the franchisor, is amended. This amendment states that Aira Fitness cannot assign its rights and obligations to a transferee unless, in its reasonable judgment, the transferee can fulfill Aira Fitness's obligations under its Franchise Agreements. This clause ensures that any transfer of the franchisor's responsibilities will only occur if the new entity is capable of maintaining the standards and commitments of the franchise system.
This condition primarily protects the franchisees, ensuring that a transfer of the Aira Fitness franchise to a new entity will not negatively impact the support, resources, and overall quality they receive. It adds a layer of security, preventing Aira Fitness from transferring its obligations to an incapable party. This is particularly important because the success of a franchise heavily relies on the franchisor's ability to provide adequate support and uphold the brand's standards.
For prospective Aira Fitness franchisees in New York, this addendum offers reassurance that the franchisor must carefully consider the capabilities of any potential transferee. It ensures that Aira Fitness cannot simply transfer its obligations to any entity without assessing their ability to meet the franchisor's duties. This provision aligns with the broader protections afforded to franchisees under New York's General Business Law, as referenced in other sections of the addendum, reinforcing the state's commitment to fair franchising practices.