Does the Aira Fitness agreement state that the non-compete is necessary to protect the System?

According to the 2025 Aira Fitness Franchise Disclosure Document, the non-compete agreement is in place to protect the confidential information and training that franchisees receive. The agreement states that franchisees will receive training and confidential information that they would not have access to without the rights licensed to them under the agreement. This is the primary justification for the non-competition covenants.

The non-compete agreement applies to "Covered Persons," which includes owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the franchise. Aira Fitness may require these individuals to sign a non-compete agreement. This ensures that all individuals with a significant connection to the franchise are bound by the non-compete obligations.

The non-compete restrictions are in effect both during the term of the Franchise Agreement and after termination. During the term, Covered Persons are prohibited from diverting Aira Fitness Business members or having any interest in other exercise facilities in the United States, except for another Aira Fitness Business operating under a valid franchise agreement with Aira Fitness. This prevents franchisees from using their knowledge and resources gained from Aira Fitness to directly compete with the franchise system. After termination, franchisees must also comply with post-term non-compete obligations as outlined in Section 11.D of the agreement.