Can Aira Fitness be acquired by a Franchisor establishing businesses identical or similar to the Franchised Business, even if the other business operates competitive businesses anywhere, including the Protected Area?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) to acquire or be acquired by a Franchisor establishing businesses identical or similar to the Franchised Business, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including the Protected Area;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness has the right to be acquired by another franchisor. This other franchisor can establish businesses identical or similar to Aira Fitness, even if that other business operates, franchises, and/or licenses competitive businesses anywhere, including the franchisee's protected area.
This means that a prospective Aira Fitness franchisee faces the risk that Aira Fitness could be acquired by a competitor. If this occurs, the franchisee's protected area may no longer be exclusive, and the franchisee may face direct competition from the acquiring company's existing businesses.
This clause is not uncommon in franchise agreements, as it allows the franchisor flexibility in the event of a sale or merger. However, it is important for a prospective franchisee to understand this risk and consider its potential impact on their business. It would be prudent for a potential franchisee to seek clarification from Aira Fitness regarding their long-term plans and the likelihood of such an acquisition.