Under what circumstances can the initial term of the Aira Fitness franchise agreement be extended?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
renew your license for unlimited renewal terms (each renewal term is 10 years), provided that with respect to each renewal you have met each of the following conditions:
- (i) you have given us written notice of your decision to renew at least six months but not more than 12 months prior to the end of the expiring term;
- (ii) you sign, at our option, either (a) our then-current form of franchise agreement, the terms and conditions of which may be materially different than the terms and conditions of our current franchise agreement and may reflect, among other things, different fees and advertising obligations and a modified Designated Area or (b) a document extending for the duration of the renewal term, all the covenants, conditions and provisions contained in this Agreement;
- (iii) you have complied with the provisions of Section 5.F regarding modernization and have agreed, in writing, to make such capital expenditures necessary to refurbish, replace and modernize your Aira Fitness Business so that it will conform to our then-current standards for Aira Fitness Businesses;
- (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise, have satisfied all monetary and material obligations on a timely basis during the term and are in good standing;
- (v) if leasing the Aira Fitness Business premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal period;
- (vi) you comply with our then-current training requirements; and
- (vii) you and your Owners and guarantors execute a general release in a form we prescribe in favor of us and our affiliates and each company's respective present and former officers, directors, managers, and employees; provided, however, that such release will not be inconsistent with any state law regulating franchising.
- (viii) you pay a renewal fee in the amount of Two Thousand Dollars ($2,000.00).
- C. Interim Period. If you continue to accept the benefits of this Agreement after the expiration of the initial term but do not complete the requirements in Section 4.B, then at our sole option, this Agreement may be treated as (i) expired as of the date of the expiration and you will be operating without a franchise or license to do so and in violation of our rights to the Marks and System; or (ii) continued on a month-to-month basis (an "Interim Period") and all your obligations will remain in full force and effect during the Interim Period as if the Agreement had not expired. Each Interim Period expires at the end of each calendar month unless this Agreement is continued as provided in this Section. The Interim Peri
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the initial term of the franchise agreement can be extended under specific conditions. To renew the franchise agreement, the franchisee must provide written notice of their decision to renew to Aira Fitness at least six months, but no more than 12 months, before the end of the current term. The franchisee must also sign either the then-current form of the franchise agreement, which may have materially different terms and conditions, or a document extending all the covenants, conditions, and provisions of the current agreement for the renewal term.
Additionally, the franchisee must comply with modernization provisions, agreeing in writing to make necessary capital expenditures to refurbish, replace, and modernize their Aira Fitness Business to meet the then-current standards. They must not be in default of the agreement or any other related agreement, and they must have fulfilled all monetary and material obligations on time and be in good standing. If the franchisee leases the Aira Fitness Business premises, they must renew the lease and provide written proof of their ability to remain in possession throughout the renewal period.
The franchisee must also comply with Aira Fitness's then-current training requirements. Furthermore, the franchisee, along with their owners and guarantors, must execute a general release in favor of Aira Fitness and its affiliates, officers, directors, managers, and employees, in a form prescribed by Aira Fitness, provided that the release is consistent with state franchising laws. Finally, the franchisee must pay a renewal fee of $2,000.
If the franchisee continues to operate the Aira Fitness business after the initial term expires but does not meet all the renewal requirements, Aira Fitness has the option to treat the agreement as either expired, meaning the franchisee is operating without a license and violating Aira Fitness's rights, or continued on a month-to-month basis, known as an "Interim Period." During this Interim Period, all obligations remain in effect as if the agreement had not expired, but it does not create any new franchise rights, and upon the expiration of the final Interim Period, the franchisee is bound by all post-term obligations.