Does the Aira Fitness agreement state that the non-compete restrictions are reasonable?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that the scope of the prohibitions stated in this Section 11.D is reasonable and necessary to protect us and the System (including other franchisees of the System).
You agree that the prohibitions in this Section 11.D must be very broad in order to prevent you from taking information, materials and training we are providing to you on an ongoing basis and using them to either compete with us, or preempt or otherwise restrict our ability to enter new markets.
You agree that the time period and the scope of the prohibitions stated in this Section 11.D are the reasonable and necessary time and distance needed to protect us if this Agreement expires or is terminated for any reason.
You also agree that you have many other opportunities available to earn a living, and that these restrictions will not preclude you from engaging in a lawful trade or business for which you otherwise are qualified.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees agree that the non-compete restrictions outlined in Section 11.D are reasonable and necessary to protect Aira Fitness and its franchise system. This acknowledgment signifies the franchisee's understanding that the breadth of these restrictions is essential to prevent the misuse of confidential information and training provided by Aira Fitness. The agreement emphasizes that this information could potentially be used to compete against Aira Fitness or to hinder the company's expansion into new markets.
The agreement also states that the time period and geographical scope of the non-compete provisions are considered reasonable to safeguard Aira Fitness's interests if the franchise agreement expires or is terminated. This includes protecting the brand from competition within a specific radius of the franchisee's location or other Aira Fitness locations.
Furthermore, the agreement asserts that these restrictions will not unduly prevent franchisees from earning a living, as they have other opportunities to pursue lawful trades or businesses for which they are qualified. This clause aims to balance the protection of Aira Fitness's business interests with the franchisee's ability to continue working in their chosen field.