For Aira Fitness, can a security interest be created without prior written consent?

According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are prohibited from retaining or creating any security interest related to a transfer without obtaining prior written consent from Aira Fitness. Moreover, any such security interest must be established under conditions acceptable to Aira Fitness. This requirement is in place to ensure that Aira Fitness maintains control over the financial structure and stability of its franchises, even during ownership transitions.

This stipulation is significant for prospective franchisees because it restricts their ability to independently finance a transfer using the business's assets as collateral without Aira Fitness's explicit approval. Franchisees need to factor in this requirement when planning for potential future sales or transfers of their Aira Fitness business. Obtaining consent might involve negotiations and adherence to specific conditions set by Aira Fitness, adding complexity to the transfer process.

The FDD also states that any agreement used in connection with a transfer is subject to Aira Fitness's prior written approval, which approval will not be unreasonably withheld. This suggests that while Aira Fitness has the right to oversee and approve security interests, they are also expected to act reasonably in their decision-making. Franchisees should be prepared to present a well-structured and financially sound proposal when seeking consent for a security interest.

Overall, this policy reflects Aira Fitness's interest in protecting its brand and ensuring the continued financial health of its franchise network. Franchisees should carefully consider these conditions and seek legal and financial advice to navigate the transfer process effectively while complying with Aira Fitness's requirements.