Under what condition does an Aira Fitness franchisee collaterally assign all rights to telephone numbers, listings, and advertisements to Aira Fitness?

According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee is required to collaterally assign all rights, title, and interest in their telephone numbers, telephone listings, and telephone directory advertisements to Aira Fitness in the event of the expiration or termination of the Franchise Agreement. This requirement is a condition for the execution of the Franchise Agreement.

This assignment ensures the continuity and stability of the Aira Fitness business operations even after a franchise agreement ends. However, the assignment becomes effective only after the Franchise Agreement has expired or is terminated according to its provisions, and Aira Fitness has provided written notice of acceptance to the franchisee. Aira Fitness does not assume liability for any outstanding debts or liabilities related to these telephone resources that accrued before the assignment's effective date.

The franchisee grants Aira Fitness an irrevocable power of attorney to take necessary actions for assigning the telephone numbers, including executing required forms. This assignment benefits the telephone companies, allowing them to accept Aira Fitness's instructions as conclusive evidence of its rights. The franchisee also agrees to protect the telephone companies from claims arising from Aira Fitness's actions regarding the assignment.

Aira Fitness retains the discretion to nullify the assignment agreement at any time before it takes effect. This provides Aira Fitness with flexibility in managing the transition of telephone resources upon the termination or expiration of a franchise agreement.