Under the Aira Fitness Development Agreement, is compliance with the Development Schedule a condition?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
DEVELOPER INITIALS |
- (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.
- 3.4 Subject to our prior written approval, you may develop and open more Aira Fitness Centers in the Development Area than you are required to develop under the Development Schedule.
- 3.5 At Franchisor's request, Developer shall provide to Franchisor a periodic report of Developer's activities and progress in developing and establishing Aira Fitness franchises under this Agreement. The reports shall be submitted in the form and in the manner specified by Franchisor.
4. TERM AND RIGHT OF FIRST REFUSAL
- 4.1 Unless sooner terminated in accordance with the terms of this Agreement, the term of this Agreement shall expire on the date you sign a Franchise Agreement for the last franchise to be developed under this Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, compliance with the Development Schedule is a condition of the Development Agreement. Specifically, Aira Fitness will only execute a Franchise Agreement if the developer is in compliance with the Development Schedule. This means that a developer must adhere to the timelines and requirements outlined in the Development Schedule to ensure Aira Fitness fulfills its obligation to execute the Franchise Agreement.
Failure to comply with the Development Schedule can have financial implications. If a developer is not in compliance with the Development Schedule when signing an additional Franchise Agreement, they may be required to pay the then-current initial franchise fee if it is greater than $10,000 for the second or greater than $8,000 for the third or other multiple Franchise Agreements above two. This condition incentivizes developers to meet the milestones set forth in the Development Schedule to avoid potentially higher franchise fees.
The Development Schedule itself, outlined in Exhibit B of the Multi-Unit Development Agreement, obligates the developer to develop, open, and operate a minimum of three Aira Fitness centers. Meeting the dates for signing Franchise Agreements, leases, or purchase agreements, and commencing operations are all part of adhering to the Development Schedule. This schedule ensures that the developer is actively working towards establishing multiple Aira Fitness locations within the agreed-upon timeframe.