Under what circumstances does Aira Fitness have no obligation to mediate claims?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as qualified below, any dispute between you and us and any of our or your affiliates, officers, directors, shareholders, members, guarantors, employees or owners arising under, out of, in connection with or in relation to this Agreement, any lease for the Aira Fitness Business or Authorized Location, the parties' relationship, the Aira Fitness Business, our Standards, or the scope or validity of the arbitration obligations under this Section must be submitted to binding arbitration under the authority of the Federal Arbitration Act and must be arbitrated in accordance with the then-current rules and procedures and under the auspices of the American Arbitration Association ("AAA"). Any arbitration must be on an individual basis, and not as part of a consolidated, common, or class action, and you and/or your Owners waive any right to proceed on a consolidated, common, or class basis. Multiparty arbitration is specifically excluded, and the parties and the arbitrator will have no authority or power to proceed with any claim as a class action or otherwise to join or consolidate any claim with any claim or other proceeding involving third parties. In the event a court or arbitrator determines that this exclusion of multiparty arbitration (including class arbitration) is unenforceable, then this entire commitment to arbitrate will be null and void and the parties must submit all claims to the jurisdiction of the courts.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, any dispute must be submitted to binding arbitration, not mediation. However, if a court or arbitrator determines that the exclusion of multiparty arbitration (including class arbitration) is unenforceable, then the entire commitment to arbitrate becomes null and void. In this specific situation, the parties must submit all claims to the jurisdiction of the courts, meaning Aira Fitness would not be obligated to mediate.
This clause has significant implications for a prospective Aira Fitness franchisee. It means that franchisees waive their right to participate in class action lawsuits against the franchisor. If a court finds this waiver unenforceable, the dispute would then be handled through the court system rather than arbitration.
It is important for a potential Aira Fitness franchisee to understand the implications of waiving the right to participate in a class action lawsuit. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement.