What is the transfer fee for assigning the Aira Fitness Development Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void and will provide us with the right 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.
We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
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.
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the transfer fee for assigning the Aira Fitness Development Agreement depends on whether the transferee is an existing franchisee. If the transferee is an existing Aira Fitness franchisee, the transfer fee is $5,000. However, if the transferee is not an existing Aira Fitness franchisee, the transfer fee is equal to the then-current initial franchise fee.
This means that a prospective franchisee looking to transfer their development agreement needs to be aware of the potential costs involved. If they are selling to someone new to the Aira Fitness system, the fee could be substantial, as it would be the same as the initial franchise fee for a brand new franchisee. This could impact the attractiveness of the deal for potential buyers.
It is important to note that any attempted transfer without prior written consent from Aira Fitness, or if the transfer does not comply with the terms of the agreement, will be considered void. In such cases, Aira Fitness has the right to either terminate the agreement or collect a transfer fee equal to two times the transfer fee outlined in Section 12.C. This highlights the importance of adhering to the franchisor's transfer policies and obtaining proper consent.
Additionally, the transferee must meet all of Aira Fitness's then-current requirements for franchisees at the time of the proposed transfer. This could include financial qualifications, experience, and other criteria. All outstanding amounts owed to Aira Fitness or its affiliates must also be paid in full before the transfer can be completed. These conditions ensure that the new franchisee is qualified and financially stable, protecting the Aira Fitness brand and system.