For Aira Fitness, what is the threshold for ownership interest that triggers the transfer requirements?

According to Aira Fitness's 2025 Franchise Disclosure Document, a transfer of ownership interest that affects 25% or more of the ownership requires the franchisor's written approval. This applies to ownership interests in the franchisee or any owner of the franchisee. This condition is in place to ensure that any significant change in ownership meets Aira Fitness's standards and is aligned with their business model.

For a prospective Aira Fitness franchisee, this means that if you plan to sell or transfer a significant portion (25% or more) of your ownership in the franchise, you must first seek approval from Aira Fitness. This requirement is not unusual in franchising, as franchisors want to maintain control over who operates their branded businesses. The process involves notifying Aira Fitness, tendering the right of first refusal, applying for consent to the transfer, paying a transfer fee if applicable, and satisfying other transfer conditions.

This provision also covers situations such as a pledge or seizure of ownership interests. If such an event affects 25% or more of the ownership, it is treated as a transfer requiring Aira Fitness's approval. This is to protect the franchisor's interests in the event of financial difficulties or other circumstances that could lead to a change in ownership. The franchisee must also ensure compliance with additional conditions outlined in Section 12.C of the franchise agreement, which may include requirements related to the transferee's qualifications, payment of outstanding amounts, and modernization of the business.