Under what conditions can an Aira Fitness franchisee terminate the Franchise Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document includes addenda that modify the standard franchise agreement based on specific state laws. For instance, in Virginia, the FDD states that it is unlawful for Aira Fitness to cancel a franchise without reasonable cause, as defined by the Virginia Retail Franchising Act. This means that any termination clauses in the franchise agreement must align with what Virginia law considers 'reasonable cause.'
In Illinois, the addendum references sections 19 and 20 of the Illinois Franchise Disclosure Act, which outline a franchisee's rights upon termination and non-renewal of the agreement. This suggests that Illinois franchisees have specific statutory protections regarding termination. Similarly, in Hawaii, the FDD indicates that Hawaii Revised Statutes, Section 482E-6, may affect the conditions under which a franchise can be terminated and the rights upon non-renewal for Hawaii franchisees.
These state-specific addenda highlight that the grounds for termination can vary significantly depending on the franchisee's location. A prospective Aira Fitness franchisee should carefully review the addendum for their specific state and consult with an attorney to fully understand their termination rights and obligations under both the franchise agreement and applicable state laws. It is important to note that certain provisions in the franchise agreement may not be enforceable if they conflict with state franchise laws.