Does Aira Fitness have any restrictions on assigning the Multi-Unit Development Agreement contract?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum is to a Multi-Unit Development Agreement dated by and between Aira Fitness Franchising, LLC and (Developer) to amend said Agreement as follows:
- Section 8 of the Multi-Unit Development Agreement on "Transferability; Entity as Developer" is amended by the addition of the following language to the original language that appears therein:
"The execution of a general release upon renewal, assignment or termination shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law."
- Section 9 of the Multi-Unit Development Agreement on "Post-Termination Covenants" is amended by the addition of the following language to the original language that appears therein:
"Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota."
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, there are addenda to the Multi-Unit Development Agreement that address specific state laws regarding the agreement. For example, an addendum for North Dakota modifies Section 8 of the Multi-Unit Development Agreement, which concerns "Transferability; Entity as Developer," by adding language related to general releases upon renewal, assignment, or termination, stating that it shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law.
Similarly, there are addenda for franchisees in Wisconsin, New York, and Illinois. These addenda primarily focus on ensuring that the franchise agreement complies with state-specific laws, such as the Wisconsin Fair Dealership Law, Article 33 of the General Business Law of the State of New York, and the Illinois Franchise Disclosure Act. These addenda address issues such as governing law, consent to jurisdiction, franchisee rights upon termination and non-renewal, and waivers of compliance with state laws.
These addenda suggest that Aira Fitness is willing to modify the Multi-Unit Development Agreement to comply with various state laws. However, the documents do not explicitly detail any specific restrictions Aira Fitness places on assigning the Multi-Unit Development Agreement contract. A prospective franchisee should seek clarification from Aira Fitness regarding any specific restrictions or conditions related to the assignment of the Multi-Unit Development Agreement to fully understand their rights and obligations.