Does the Aira Fitness agreement allow for the geographic area of non-competition to expand after the agreement date?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.2 Developer specifically acknowledges that, pursuant to this Agreement, Developer will have access to the Confidential Information. Accordingly, Developer covenants that Developer and its Owners shall not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, or entity:
- (a) own, maintain, operate, engage in, consult with or have any interest in (as disclosed or beneficial owner) any Competitive Business or any entity which is franchises, licenses or develops Competitive Businesses within the Development Area, or within a ten (10) mile radius of any existing Aira Fitness Center, except under a validly existing Franchise Agreement with Franchisor. You acknowledge and agree that, after the date of this Agreement, other Aira Fitness Centers may open, thereby expanding the geographical area in which you will not be able to compete with us. For purposes of this Section 9, a "Competitive Business" is defined as any fitness center, studio or exercise facility;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the geographic area of non-competition can expand after the agreement date. Specifically, the agreement states that after the date of the agreement, other Aira Fitness centers may open, thereby expanding the geographical area in which the franchisee will not be able to compete with Aira Fitness. This clause is part of the post-termination covenants, which apply for two years after the expiration or termination of the agreement.
This means that while a franchisee is bound by non-competition restrictions within a certain radius of existing Aira Fitness centers at the time of termination or expiration, that radius could effectively grow if new Aira Fitness locations open during the term of the franchise agreement. Therefore, a franchisee's ability to engage in a competitive business after leaving the Aira Fitness system could be further limited by the opening of new franchises.
This condition is important for prospective franchisees to consider, as it introduces an element of uncertainty regarding the scope of their non-compete obligations in the future. The franchisee's future business opportunities could be affected by Aira Fitness's expansion strategy, even after they are no longer part of the franchise system.
It is advisable for potential Aira Fitness franchisees to discuss this aspect with the franchisor to understand Aira Fitness's development plans and how they might impact the franchisee's future competitive activities. Understanding the potential expansion plans of Aira Fitness can help a franchisee make informed decisions about their long-term business strategy and post-franchise opportunities.