What is the 'Term' referring to in the Aira Fitness franchise lease agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's |
|---|---|---|
| WITNESSETH | ||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. 200 Wheaton, IL 60189 Attn: Alissa Carter Verson | |
| (b) | Franchisee's Address for Notice: With a copy of all notices going to: (Franchisee): | |
| (c) | Concurrently with the execution of this Agreement a material inducement of Franchisor's Affiliate's obligations under this Agreement, , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of |
| (d) | The period commencing on the Commencement Date of the Term and ending on the Expiration Date of the Term, is referred to in this Agreement as the "Term." | |
| (e) | The "Commencement Date" of the Term shall be upon delivery of the Pod, the specifications of which are listed in Schedule 1 to 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' in the context of the lease agreement refers to the period commencing on the Commencement Date and ending on the Expiration Date. The Commencement Date is defined as the date upon delivery of the Pod, which has specifications listed in Schedule 1 of the agreement. This clarifies the duration of the lease for the Aira Fitness franchisee.
This definition is important for prospective franchisees as it establishes the timeframe during which they are obligated to fulfill the terms of the lease, including rent payments and other responsibilities. Understanding the 'Term' helps franchisees plan their business operations and financial commitments accordingly. The lease agreement also outlines conditions for assignment, termination, and other critical aspects that affect the franchisee's rights and obligations during this period.
It is crucial for potential Aira Fitness franchisees to carefully review Schedule 1 and understand the implications of the Commencement Date being tied to the delivery of the Pod. Delays in delivery could potentially affect the start of their business operations and associated revenue generation. Additionally, franchisees should be aware of the Expiration Date and any renewal options available to them, as well as the conditions under which Aira Fitness might assume the lease, as detailed in other sections of the FDD.