Under what condition is an Aira Fitness franchisee entitled to possession and use of the equipment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
For instance, we require that you modernize the Aira Fitness Business within five years of the Effective Date of this Agreement.
We also require that you replace all fitness equipment within three years of the Effective Date of this Agreement.
If you choose to purchase the fitness equipment, at the end of each three year period, you may offer your old equipment to anyone, but we have the right of first refusal to buy the equipment on the same terms and conditions as any potential buyer.
You must give us seven (7) days' written notice of any potential sale of your old equipment and a reasonable opportunity to match any offer you have that you intend to accept.
We are under no obligation to actually exercise our right of first refusal.
If you choose to lease the fitness equipment, at the end of each three year period, you must return the old equipment to the designated or approved supplier of the fitness equipment or otherwise per the terms of the equipment lease, which designated or approved supplier may be us or our affiliate.
You must then enter into a purchase agreement or lease for replacement equipment with a designated or approved, which may be us or our affiliate.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a franchisee's entitlement to possession and use of equipment is tied to equipment modernization and lease agreements. Specifically, Aira Fitness requires franchisees to modernize their businesses, including replacing all fitness equipment within three years of the franchise agreement's effective date.
If a franchisee chooses to purchase the fitness equipment, they may offer their old equipment for sale at the end of each three-year period, but Aira Fitness retains the right of first refusal to buy the equipment under the same terms as any other potential buyer. The franchisee must provide Aira Fitness with seven days' written notice of any potential sale and allow them a reasonable opportunity to match the offer.
Alternatively, if the franchisee chooses to lease the fitness equipment, they must return the old equipment to the designated or approved supplier at the end of each three-year period, as per the terms of the equipment lease. Following this, the franchisee must enter into a new purchase agreement or lease for replacement equipment with a designated or approved supplier, which may be Aira Fitness or one of its affiliates. Therefore, possession and use of equipment are contingent upon fulfilling these modernization requirements and adhering to the terms of either a purchase or lease agreement for replacement equipment.