Does the Aira Fitness agreement mention any exceptions to the non-compete agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The ownership of two percent (2%) or less of a publicly traded Franchisor will not be deemed to be prohibited by this paragraph.
- 9.3 Court Modification of Agreement**.** You agree that this form of Agreement is prepared for use in many jurisdictions with differing public policies and that such public policies change. Accordingly, you agree that the prevailing non-competition restrictions set forth above may be modified by a Court to the extent necessary to make the non-competition agreements valid and enforceable against you.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, there are some exceptions to the non-compete agreement. Specifically, the ownership of two percent (2%) or less of a publicly traded franchisor will not be prohibited. This exception allows franchisees to hold a small investment in a competing franchise without violating the non-compete terms.
Additionally, the agreement acknowledges that non-competition restrictions may be modified by a court to ensure they are valid and enforceable. This implies that if any part of the non-compete agreement is deemed too restrictive or unreasonable under local laws, a court may adjust the terms. This flexibility aims to balance the franchisor's need to protect its business interests with the franchisee's rights and the prevailing public policies of different jurisdictions.
These exceptions provide some level of flexibility for Aira Fitness franchisees. The allowance for minor investments in publicly traded competitors offers a degree of financial freedom, while the possibility of court modification ensures that the non-compete terms remain fair and enforceable. Prospective franchisees should understand these exceptions and how they might apply in their specific circumstances and location.