Under what condition are transfer fees collectable for an Aira Fitness franchise transfer?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT J
STATE SPECIFIC ADDENDA TO FDD
Some administrators of franchise registration states may require us to include an addendum to the Aira Fitness Franchise Disclosure Document describing certain state laws or regulations which may supersede the Franchise Disclosure Document. If you are in a registration state which requires an addendum to the Franchise Disclosure Document, it will follow this page.
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO THE DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
The Aira Fitness Franchising, LLC Disclosure Document for use in the State of Hawaii is modified in accordance with the following:
- For Hawaii franchisees, the conditions under which the franchise can be terminated and rights upon nonrenewal may be affected by Hawaii Revised Statutes, Section 482E-6.
AIRA FITNESS FRANCHISING LLC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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, several state-specific addenda address franchise agreements, but none of them specify the conditions under which transfer fees are collectable. The addenda primarily focus on modifications to the franchise agreement related to initial fees, governing law, non-waiver provisions, and franchisee rights upon termination or non-renewal, particularly in states like Illinois, Wisconsin, North Dakota, Hawaii, and New York. These addenda aim to ensure compliance with state franchise laws and protect franchisees' rights.
Specifically, the Illinois addendum defers initial franchise fees until the franchisor meets its obligations and the franchisee commences business, addressing financial assurance requirements. The New York addendum reinforces franchisees' rights under New York's General Business Law, ensuring that franchisees cannot waive certain protections. The North Dakota addendum modifies conditions related to renewal and transfer, stating that general releases upon renewal, assignment, or termination do not apply to franchises operating under the North Dakota Franchise Investment Law.
Because the FDD excerpts do not provide specific details on when Aira Fitness collects transfer fees, prospective franchisees should directly ask the franchisor about the conditions and amounts related to franchise transfers. Understanding these conditions is crucial for financial planning and assessing the overall cost of owning and potentially selling an Aira Fitness franchise.