Does Aira Fitness have any restrictions on assigning the franchise contract?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
GBL Section 687.4 and 687.5 be satisfied."
- 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."
- Paragraph 13(C) of the Franchise Agreement on Governing Law/Consent to Jurisdiction shall be amended by the addition of the following language to the original language that appears therein:
"The foregoing choice of law shall not be considered a waiver of any right conferred upon the Franchisee by the provisions of Article 33 of the General Business Law of the State of New York."
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Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, specific details regarding restrictions on assigning the franchise agreement are not explicitly outlined in the provided excerpts. However, there are addenda that modify the franchise agreement based on specific state laws. For example, the addendum for New York states that the franchisor cannot assign its rights and obligations to a transferee unless the transferee can fulfill the franchisor's obligations under the Franchise Agreements. Also, the addendum for North Dakota states that the execution of a general release upon assignment shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law. These addenda suggest that the assignment of a franchise agreement may be subject to certain conditions and legal considerations, which can vary by state.
Given the lack of comprehensive information on transfer restrictions, it is essential for a prospective Aira Fitness franchisee to carefully review Item 17 of the FDD, which generally covers transfer and termination, and to consult with a legal professional. This review should focus on understanding the specific conditions under which the franchise agreement can be assigned, any associated fees or requirements, and the franchisor's approval process for potential transferees.
To gain a clearer understanding of the assignment process, a potential franchisee should directly ask Aira Fitness about the specific procedures and criteria involved in transferring a franchise. This inquiry should include questions about any limitations on potential buyers, the franchisor's rights of first refusal, and any training or qualification requirements for the new franchisee. Understanding these details is crucial for making an informed decision about investing in an Aira Fitness franchise and planning for future exit strategies.