Under what circumstances can Aira Fitness terminate a franchise agreement with cause?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
E DOCUMENT FOR THE COMMONWEALTH OF VIRGINIA
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Aira Fitness Franchising, LLC for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following is added to Item 5:
The Virginial State Corporate Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owned by franchisees to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement.
The following statements are added to Item 17.h.:
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the franchise agreement does not constitute "reasonable cause, "as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO THE FRANCHISE AGREEMENT FOR THE COMMONWEATLH OF VIRGINIA
| ("Com | | Agreement is by and between Aira Fitness Franchising, LLC ("Franchisee") to amend said Agreement as follows: | |--
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the specific conditions under which Aira Fitness can terminate a franchise agreement for cause are not detailed in the provided excerpts. However, the document includes addenda for several states (Virginia, North Dakota, Indiana, New York, Hawaii, Illinois, and Wisconsin) that address how state laws may affect the franchise agreement, including termination and non-renewal rights. These addenda primarily focus on waivers, governing law, and the franchisee's rights under state franchise laws.
Specifically, the addendum for Virginia notes that it is unlawful for a franchisor to cancel a franchise without reasonable cause, and any grounds for default or termination stated in the franchise agreement must constitute "reasonable cause" as defined by Virginia law. The Hawaii addendum indicates that the conditions under which a franchise can be terminated may be affected by Hawaii Revised Statutes, Section 482E-6. The Illinois addendum mentions that your rights upon termination and non-renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
For a prospective Aira Fitness franchisee, it is crucial to carefully review the franchise agreement and any state-specific addenda to understand the exact circumstances under which Aira Fitness can terminate the agreement. It would be prudent to consult with a franchise attorney to ensure full comprehension of these terms and how they are interpreted under the relevant state laws. Since the specific 'for cause' termination conditions are not provided, a potential franchisee should ask Aira Fitness for a comprehensive list of these conditions and how they align with state laws.