Under what condition is it unlawful for Aira Fitness to repurchase a franchisee's business during the term of the franchise agreement?

According to Aira Fitness's 2025 Franchise Disclosure Document, specifically the addendum for the Commonwealth of Virginia, it is unlawful for Aira Fitness to cancel a franchise without reasonable cause. This is in accordance with Section 13.1-564 of the Virginia Retail Franchising Act.

This means that if Aira Fitness attempts to terminate a franchise agreement in Virginia without demonstrating a legitimate and justifiable reason, such as a significant breach of contract by the franchisee, the termination may be deemed unlawful under Virginia law. The grounds for default or termination stated in the franchise agreement must align with the definition of "reasonable cause" as interpreted by the Virginia Retail Franchising Act or the laws of Virginia to be enforceable.

For a prospective Aira Fitness franchisee in Virginia, this provides a degree of protection against arbitrary or unfair termination by the franchisor. However, it's important to understand what constitutes "reasonable cause" under Virginia law, as the specific interpretation can vary. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement and Virginia law.

This type of protection is not universally present in franchise agreements across all states, so the Virginia addendum offers a specific benefit to franchisees operating in that state. Franchisees in other states may not have the same level of protection against termination without cause, highlighting the importance of carefully reviewing the specific legal addenda applicable to their state.