Can Aira Fitness unilaterally modify the franchise agreement under certain circumstances?

According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness has the option to modify the franchise agreement under specific conditions, particularly concerning renewal and transfer scenarios.

In the event of a franchise transfer, Aira Fitness retains the unilateral right to modify the boundaries of the designated area under the new franchise agreement. This modification, if any, will be documented in the new franchise agreement issued for the transfer. This means that when a franchisee sells their Aira Fitness business, the franchisor can adjust the territory granted to the new franchisee.

Furthermore, when a franchisee seeks to renew their franchise agreement, Aira Fitness has the option to require the franchisee to sign Aira Fitness's then-current form of franchise agreement. The terms and conditions of this new agreement may differ significantly from the original, potentially including different fees, advertising obligations, and a modified designated area. This implies that upon renewal, franchisees may face altered financial and operational requirements, as well as changes to their exclusive territory, which could impact their business operations and profitability.

These provisions grant Aira Fitness significant flexibility in shaping the terms of franchise agreements during transfers and renewals. Prospective franchisees should carefully consider these potential changes and their implications for the long-term operation and value of their Aira Fitness business. It is essential to understand the conditions under which these modifications can occur and to evaluate the potential impact on the franchisee's rights and obligations.