Can the tenant assign their lease to Aira Fitness without the landlord's consent?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Tenant has the right to assign all of its right, title and interest in the Lease to Aira Fitness or its successor, or either company's affiliates, at any time during the term of the Lease, including any extensions or renewals, without first obtaining Landlord's consent. No assignment will be effective, however, until Aira Fitness or its successor or designated affiliate gives Landlord written notice of its acceptance of the assignment. If Aira Fitness elects to assume the lease under this paragraph or unilaterally assumes the lease as provided for in subparagraphs 3(c) or 4(a), Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations, including amounts owed to Landlord, prior to the date of assignment and assumption, and (ii) Aira Fitness will have the right to sublease the Premises to another AIRA FITNESS franchisee, without further need for Landlord approval, provided the franchisee agrees to operate the Aira Fitness Business as an Aira Fitness Business pursuant to a franchise agreement with Aira Fitness. Aira Fitness will be responsible for the lease obligations incurred after the effective date of the assignment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a tenant (franchisee) has the right to assign their lease to Aira Fitness, its successor, or either company's affiliates without obtaining the landlord's consent. This assignment can occur at any time during the lease term, including any extensions or renewals. However, the assignment is not effective until Aira Fitness or its successor provides the landlord with written notice of acceptance.
If Aira Fitness assumes the lease, the original tenant (franchisee) remains liable for responsibilities and obligations, including amounts owed to the landlord, prior to the assignment date. Aira Fitness becomes responsible for lease obligations incurred after the effective date of the assignment. Furthermore, Aira Fitness has the right to sublease the premises to another Aira Fitness franchisee without further landlord approval, provided the new franchisee agrees to operate the business under a franchise agreement with Aira Fitness.
This arrangement benefits the franchisee by providing a clear path for Aira Fitness to take over the lease, potentially offering an exit strategy if the franchisee faces difficulties. It also benefits Aira Fitness by allowing them to maintain control over the location and ensure continued operation of an Aira Fitness business. The landlord is protected by the original tenant's liability for past obligations and the assurance that Aira Fitness will be responsible for future obligations. This clause is included in an addendum to the lease, which Aira Fitness requires to be in place before a franchisee can lease a premise.