Under what condition does Aira Fitness require the franchisee to collaterally assign all rights to Membership Contracts to Aira Fitness?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to the execution of the Franchise Agreement, Aira Fitness has required that Franchisee collaterally assign all of its right, title and interest in the Membership Contracts to Aira Fitness in the event of expiration or termination of the Franchise Agreement;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, as a condition of the Franchise Agreement, Aira Fitness requires that franchisees collaterally assign all rights, title, and interest in their Membership Contracts to Aira Fitness. This assignment is specifically triggered in the event of the expiration or termination of the Franchise Agreement.
This requirement ensures that Aira Fitness can maintain continuity and stability in the operation of the Aira Fitness business, even if a franchisee leaves the system. By taking control of the Membership Contracts, Aira Fitness can continue to provide services to existing members and prevent disruption to the business.
This condition is outlined in the Membership Contract Assignment Agreement, which franchisees must execute. This agreement allows Aira Fitness to step in and manage the membership base, which is a critical asset of the business, if the franchisee's operation ceases. The assignment becomes effective specifically upon the expiration or termination of the Franchise Agreement.