Under the Aira Fitness lease, are the franchisee's obligations to pay rent and other amounts conditional?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rsonal property (together with all attachments, replacements, parts, substitutions, additions, repairs, accessions and accessories, incorporated therein and/or affixed, thereto) (the "Equipment") described in any Schedule to Equipment Lease (a "Schedule") subsequently executed by the parties hereto and incorporating the terms of this Equipment Lease by reference therein (the "Lease").
- (b) The Equipment is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Equipment, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease.
- 3. Term and Rent; Purchase Option. Franchisee shall pay as monthly rent for use of the Equipment the amount described in Paragraph 1(h) above on the 1st day of each month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the franchisee's obligation to pay rent for the fitness equipment is not conditional. The franchisee is required to pay monthly rent for the use of the equipment, as detailed in Paragraph 1(h), on the first day of each month following the commencement date.
If the franchisee fails to pay the rental amount within five days of the due date, they will incur an additional late service charge. This charge will be the greater of $100.00 or 18% of the unpaid amount. The FDD emphasizes that timely payment of rent is critical under the lease agreement.
This clause highlights the importance of managing cash flow and ensuring timely payments to avoid penalties. Franchisees should factor these potential late fees into their financial planning and operational procedures. The franchisor's strict stance on timely payments suggests a need for franchisees to maintain diligent financial practices.