Is the term of the Aira Fitness Development Agreement related to the term of any franchise agreement or lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
4.1 Unless sooner terminated in accordance with the terms of this Agreement, the term of this Agreement shall expire on the date you sign a Franchise Agreement for the last franchise to be developed under this Agreement. The term of this Agreement is not related or affected by the term of any franchise agreement, lease, or other agreement related to any Aira Fitness Center. This Agreement does not contain or create any right to renewal. Notwithstanding Section 4.2 below, any and all rights in the Development Area granted to you under this Agreement expire upon the expiration of this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the term of the Development Agreement is not related to the term of any franchise agreement, lease, or other agreement related to any Aira Fitness Center. The Development Agreement's term concludes when the franchisee signs a Franchise Agreement for the final franchise to be developed under the Development Agreement. The Development Agreement does not include any right to renewal, and all rights in the Development Area expire upon the Development Agreement's expiration.
This means that the duration of the Development Agreement is tied specifically to the franchisee's commitment to develop the agreed-upon number of Aira Fitness locations. Once the franchisee has signed the Franchise Agreements for all required locations, the Development Agreement ends, irrespective of how long those individual franchises operate or the terms of their respective leases.
This separation provides clarity for both Aira Fitness and the franchisee. The franchisee's obligations under the Development Agreement are distinct from the ongoing operation of individual franchise locations. This also means that the expiration or termination of a lease for one Aira Fitness location does not impact the overall Development Agreement. However, it is important to note that the franchisee must still comply with the terms of the Development Agreement, including the Development Schedule, to maintain their rights under the agreement.