Under what conditions can Aira Fitness's Affiliate cancel the Pod lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ch month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the due date thereof, Franchisee will pay on demand, as an additional late service and/or overhead charge, but not as interest, on amounts not paid when due, the greater of One Hundred Dollars ($100.00) or, in amount equal to eighteen percent (18%) of any such unpaid amount but in no event to exceed maximum lawful charges. TIME IS OF THE ESSENCE FOR THE PAYMENT OF RENT UNDER THIS PROVISION.
THIS LEASE IS NON-CANCELABLE FOR ITS ENTIRE TERM and Franchisee has no right of prepayment unless specifically granted to Franchisee in a written rider signed by the parties hereto. Upon expiration of the term of this Lease, and until return to Franchisor's Affiliate of the Pod and any and all other equipment leased hereunder, or until any purchase option price is paid, this Lease shall remain effective and shall become a month-to-month lease between the parties on the same terms and conditions, and the monthly rent then in effect shall be the rent payable during such month-to-month term under each applicable schedule ("Month-to-Month Period").
Franchisee may purchase the Pod at the end of the term and during any Month-to-Month Period of this Lease in an amount equal to Twenty Thousand Dollars ($20,000.00), provided that (a) Franchisee gives Franchisor's Affiliate written notice of Franchisee's intention to exercise the option at least 30 days prior to the exercise of such option; (b) Franchisee is not in default under any covenant or condition of this Lease, and (
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness FDD, the Pod lease agreement between the franchisee and Aira Fitness's affiliate, Pure Gym Equipment LLC, is explicitly non-cancelable for its entire term. This means that once the lease commences upon delivery of the Pod, the franchisee is obligated to fulfill the lease terms for the duration of the agreement, unless a specific written rider grants prepayment rights.
Even after the initial term expires, the lease does not automatically terminate. Instead, it transitions into a month-to-month lease under the same terms and conditions until the Pod and all other leased equipment are returned to Aira Fitness's affiliate or until the franchisee exercises their purchase option. The monthly rent during this month-to-month period will be the same as the rent in effect during the original term.
The franchisee does have the option to purchase the Pod at the end of the lease term or during any month-to-month period for $20,000, provided they give written notice at least 30 days prior to exercising the option, are not in default under the lease, and pay all rent and other charges due. However, this purchase is "AS IS" and "WHERE IS," without any warranties from Aira Fitness's affiliate.