What written notice is Aira Fitness required to deliver to the franchisee for the assignment of membership contracts to be effective?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of expiration or termination of the Franchise Agreement, and in order to secure continuity and stability of the operation of the Aira Fitness Business, Franchisee hereby sells, assigns, transfers and conveys to the Aira Fitness all of its rights, title and interest in and to all Membership Contracts; provided, however, such Assignment will not be effective unless and until the Franchise Agreement has expired or is terminated in accordance with the provisions thereof and Aira Fitness has delivered to Franchisee written notice of its acceptance of the assignment. In the event of such assignment, AIRA Fitness will assume no liability for monies owed or other liabilities relating to the Membership Contracts that have accrued prior to the effective date of the assignment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, in the event of the expiration or termination of the Franchise Agreement, the franchisee assigns all rights to membership contracts to Aira Fitness. However, this assignment becomes effective only after two conditions are met. First, the Franchise Agreement must have expired or been terminated according to its provisions. Second, Aira Fitness must provide the franchisee with written notice that it accepts the assignment of the membership contracts.
This requirement ensures that the franchisee is formally informed of Aira Fitness's decision to take over the membership contracts, providing a clear point of transition. Without this written notice, the assignment is not considered effective, and the franchisee retains responsibility for the membership contracts.
It's also important to note that Aira Fitness will not assume any liability for monies owed or other liabilities related to the membership contracts that accrued before the assignment's effective date. This means the franchisee remains responsible for any outstanding obligations up to the point when Aira Fitness formally accepts the assignment in writing.