What standards must proposed assignees or transferees meet for Aira Fitness approval?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
to elect either to default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfer fee provided for in Section 12.C.
- C. Conditions of Transfer. We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
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- Transferee Qualifications. The transferee must meet all of our then-current requirements for the franchise we are offering at the time of the proposed transfer.
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- Payment of Amounts Owed. All amounts owed by you to us or any of our affiliates, your suppliers or any landlord for the Aira Fitness Business premises and Authorized Location, or upon which we or any of our affiliates have any contingent liability must be paid in full.
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- Reports. You must have provided all required reports to us in accordance with Section 10.
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- Modernization. You must have complied with the provisions of Section 5.F.
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- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
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- Consent to Transfer; General Release. You, each Owner and each guarantor must execute all transfer documents that we require and in the form we designate, which documents will include a general release
of all claims arising out of or relating to this Agreement, your Aira Fitness Business or the parties' business relationship; provided, however, that the release will not be inconsistent with any state law regulating franchising.
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- Training. The transferee must, at your or the transferee's expense, comply with the training requirements of Section 7.B.
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- Financial Reports and Data. We have the right to require you to prepare and furnish to transferee and/or us such financial reports and other data relating to the Aira Fitness Business and its operations as we deem reasonably necessary or appropriate for transferee and/or us to evaluate the Aira Fitness Business and the proposed transfer. You agree that we have the right to confer with proposed transferees and furnish them with information concerning the Aira Fitness Business and proposed transfer without being held liable to you, except for intentional misstatements made to a transferee. Any information furnished by us to proposed transferees is for the sole purpose of permitting the transferees to evaluate the Aira Fitness Business and proposed transfer and must not be construed in any manner or form whatsoever as earnings claims or claims of success or failure.
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- Transfer Fee. If the transferee is an existing AIRA FITNESS franchisee, you must pay us a transfer fee equal to Five Thousand Dollars ($5,000); if the transferee is not an existing AIRA FITNESS franchisee, you must pay us a transfer fee equal to our then-current initial franchise fee.
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- New Franchise Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a proposed transferee must meet several conditions to be approved. The transferee must meet all of Aira Fitness's then-current requirements for franchisees at the time of the proposed transfer. This suggests that the standards for new franchisees may evolve, and transferees will be evaluated against the most up-to-date criteria.
Additionally, all outstanding amounts owed to Aira Fitness, its affiliates, suppliers, or the landlord of the Aira Fitness Business premises must be paid in full. The franchisee must also have provided all required reports to Aira Fitness. The franchisee must have complied with modernization requirements outlined in Section 5.F of the agreement. The current franchisee, owners, and guarantors must execute all required transfer documents, including a general release of claims related to the franchise agreement or business relationship.
The transferee must comply with the training requirements outlined in Section 7.B, potentially incurring expenses for this training. Aira Fitness has the right to request financial reports and data related to the business to evaluate the proposed transfer. The current franchisee or the proposed transferee must provide all reasonably requested information about the transfer terms, ensuring that the financial terms do not negatively impact the business's ability to operate and meet its liabilities after the transfer. The franchisee must also comply with any other conditions that Aira Fitness reasonably requires as part of its transfer policies.
If the proposed transfer results in a change of control, the transferee must execute Aira Fitness's then-current form of franchise agreement and personal guaranty, although no initial franchise fee will be due. If the transferee is an existing Aira Fitness franchisee, the transfer fee is $5,000; if not, the fee equals the then-current initial franchise fee. These conditions collectively ensure that the transferee is qualified, financially stable, and committed to upholding Aira Fitness's standards and obligations.