Under what conditions regarding representations and warranties are the rights to open Aira Fitness Centers granted?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1 The right to open Aira Fitness Centers has been granted in reliance on your representations and warranties, and strictly on the conditions set forth in this Development Agreement including, without limitation, the condition that you comply strictly with the Development Schedule.
- 7.2 You shall be in default under this Agreement, and all rights granted herein to you shall automatically terminate without notice or an opportunity to cure if:
- (a) you are adjudicated bankrupt, become insolvent, commits any affirmative action of insolvency or files any action or petition of insolvency, or if a receiver (permanent or temporary) of your property or any part thereof is appointed by a court of competent authority, or if you make a general assignment for the benefit of its creditors;
- (b) if a final judgment against your business assets remains unsatisfied of record for thirty (30) days or longer (unless supersedeas bond is filed);
- (c) if execution is levied against your business or property;
- (d) if suit to foreclose any lien or mortgage against Developer's premises or business assets is instituted against you and not dismissed within thirty (30) days, or is not in the process of being dismissed; provided, however, that Franchisor reserves the right to be named as trustee or receiver in any voluntary
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness FDD, the right to open Aira Fitness Centers is specifically granted based on the franchisee's representations and warranties. These rights are also contingent upon strict adherence to the conditions outlined in the Development Agreement, which notably includes compliance with the Development Schedule. This means that Aira Fitness places significant importance on the accuracy of the information provided by the franchisee and their commitment to meeting the agreed-upon development milestones.
Failure to uphold these representations and warranties, or non-compliance with the Development Schedule, can result in a default under the Development Agreement. If a franchisee defaults, all rights granted to them to open Aira Fitness Centers can be automatically terminated without notice or an opportunity to cure the breach. This underscores the importance of franchisees being truthful and diligent in their dealings with Aira Fitness and in meeting their developmental obligations.
Specifically, certain events such as bankruptcy, insolvency, unsatisfied judgments, or foreclosure suits can trigger an automatic termination of the franchisee's rights. These conditions highlight the financial stability and legal compliance expected of Aira Fitness franchisees. Prospective franchisees should carefully review the Development Agreement and ensure they fully understand and can meet all the conditions and obligations, including the Development Schedule, to avoid potential termination of their rights to open Aira Fitness Centers.