Under the Pod Package Lease for an Aira Fitness franchise, what rights are waived?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) You must purchase or lease the Pod Package from us. You can pay the purchase price for the initial fitness equipment in full or we will lease you the initial fitness equipment. You willsign the standard form Pod Package Purchase Agreement along with the Personal Guaranty that is attached to this Disclosure Document as Exhibit H or you willsign the standard form Pod Package Lease along with the Personal Guaranty that is attached to this Disclosure Document as Exhibit I. We do not require any parties who do not have ownership interest in the franchise to sign the Personal Guaranty. Under the Pod Package Lease, you waive (i) rights and remedies underSections 2A-508 through 12A-522 of the Uniform Commercial Code (UCC); (ii) rights to require our affiliate to mitigate damages; and (iii) the right to trial by jury. Additionally, under the Pod Package Lease, the statute of limitations for breach of warranty is limited to 1 year.
Source: Item 10 — **FINANCING (FDD pages 36–38)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, when a franchisee enters into a Pod Package Lease, they waive certain rights. Specifically, the franchisee waives rights and remedies under Sections 2A-508 through 12A-522 of the Uniform Commercial Code (UCC). This means that the franchisee gives up some of the legal protections normally afforded to lessees under commercial law.
Additionally, the franchisee waives the right to require Aira Fitness's affiliate to mitigate damages. In a typical business dispute, the damaged party has a responsibility to take reasonable steps to minimize their losses. However, under this lease, the franchisee cannot compel Aira Fitness's affiliate to take such actions. The franchisee also waives the right to a trial by jury, meaning any disputes would be resolved by a judge rather than a jury of their peers.
Furthermore, the statute of limitations for breach of warranty is limited to one year under the Pod Package Lease. This means that a franchisee only has one year from the date of the breach to file a warranty claim, which is a shorter period than might otherwise be available under applicable law. Prospective franchisees should carefully consider these waivers and consult with legal counsel to understand their implications before signing the Pod Package Lease with Aira Fitness.