What right does Aira Fitness have regarding the sale of old fitness equipment by a franchisee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you choose to purchase the fitness equipment, at the end of each three year period, you may offer your old equipment to anyone, but we have the right of first refusal to buy the equipment on the same terms and conditions as any potential buyer.
You must give us seven (7) days' written notice of any potential sale of your old equipment and a reasonable opportunity to match any offer you have that you intend to accept.
We are under no obligation to actually exercise our right of first refusal.
If you choose to lease the fitness equipment, at the end of each three year period, you must return the old equipment to the designated or approved supplier of the fitness equipment or otherwise per the terms of the equipment lease, which designated or approved supplier may be us or our affiliate.
You must then enter into a purchase agreement or lease for replacement equipment with a designated or approved, which may be us or our affiliate.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are required to replace all fitness equipment within three years of the Effective Date of the Franchise Agreement. If a franchisee chooses to purchase the fitness equipment, they may offer their old equipment to anyone at the end of each three-year period. However, Aira Fitness retains the right of first refusal to buy the equipment, matching the terms and conditions of any potential buyer's offer.
To exercise this right, Aira Fitness requires the franchisee to provide seven days' written notice of any potential sale of the old equipment. This notice must include a reasonable opportunity for Aira Fitness to match the offer the franchisee intends to accept. However, Aira Fitness is under no obligation to exercise its right of first refusal.
If the franchisee chooses to lease the fitness equipment, they must return the old equipment to the designated or approved supplier at the end of each three-year period, according to the terms of the equipment lease. This supplier may be Aira Fitness or one of its affiliates. The franchisee must then enter into a new purchase agreement or lease for replacement equipment with a designated or approved supplier, which again may be Aira Fitness or its affiliate.
This right of first refusal allows Aira Fitness to maintain control over the quality and standards of equipment used in its franchised locations. It also provides Aira Fitness with an opportunity to acquire used equipment, potentially for use in other locations or for resale. For a franchisee, this means they must factor in the equipment replacement cycle and Aira Fitness's right of first refusal when planning their finances and operations.