Under what conditions is Aira Fitness obligated to execute the Franchise Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) By executing a lease, in a form approved by us, or purchase agreement for the proposed site; and
- (e) By meeting all of the requirements for developing and opening the Aira Fitness Center under the terms of the applicable Franchise Agreement.
- 3.3 We will be obligated to execute the Franchise Agreement only if (i) you continue to maintain the requisite knowledge, experience, skills, and financial resources to perform as a franchisee, (ii) you are in compliance with this Agreement, including but not limited to compliance with the Development Schedule and in compliance with the in-term covenants set forth in Paragraph 6.4, (iii) you (and/or an affiliate) are in compliance any and all existing Franchise Agreements between us.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness is only obligated to execute the Franchise Agreement if certain conditions are met. These conditions include the franchisee maintaining the necessary knowledge, experience, skills, and financial resources to perform as a franchisee. The franchisee must also be in compliance with the Development Agreement, including adherence to the Development Schedule and in-term covenants. Furthermore, the franchisee (or an affiliate) must be in compliance with any and all existing Franchise Agreements between them and Aira Fitness.
For a prospective Aira Fitness franchisee, this means that simply signing a Development Agreement does not guarantee that Aira Fitness will execute individual Franchise Agreements for each Aira Fitness Center. The franchisee must continuously demonstrate their ability to operate the franchise successfully and adhere to all agreements. Failure to meet these conditions gives Aira Fitness the right to refuse to execute further Franchise Agreements, potentially limiting the franchisee's ability to develop the agreed-upon number of centers.
This clause protects Aira Fitness by ensuring that franchisees meet certain standards and obligations before being granted additional franchises. It also motivates franchisees to maintain compliance and perform well to secure the execution of future Franchise Agreements. Franchisees should carefully review the Development Agreement and any existing Franchise Agreements to fully understand their obligations and the conditions under which Aira Fitness is obligated to execute additional Franchise Agreements.