What is considered a 'Competitive Business' according to the Aira Fitness agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, Covered Persons must not directly or indirectly, for themselves or through, on behalf of or in conjunction with any individual or business entity: (i) divert any Aira Fitness Business member, potential Aira Fitness Business member or former Aira Fitness Business member to any exercise facility except another Aira Fitness Business; or (ii) own, operate, lease, franchise, engage in, be connected with, have any interest in, or assist any person or entity engaged in any other exercise facility (including, but not limited to a 24/7 fitness center, studio or exercise facility; a fitness center, studio or exercise facility featuring keycard access or a structured fitness/training program or complete body overhaul program for individuals) in the United States, except another Aira Fitness Business pursuant to a valid franchise agreement with us.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a 'Competitive Business' is defined within the context of non-competition covenants during the term of the franchise agreement. Specifically, a Covered Person (including owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest) is prohibited from engaging in or having any interest in any other exercise facility in the United States.
This restriction includes, but is not limited to, 24/7 fitness centers, studios or exercise facilities, facilities featuring keycard access, or those offering structured fitness/training programs or complete body overhaul programs. The only exception is another Aira Fitness Business operating under a valid franchise agreement with Aira Fitness. This means that during the term of the agreement, franchisees and related parties are significantly restricted from involvement with any competing fitness business, regardless of its specific model or features.
This non-compete clause is fairly standard in the franchise industry, designed to protect the Aira Fitness brand and prevent franchisees from using proprietary information or business models to benefit competing businesses. Prospective franchisees should carefully consider the breadth of this restriction and ensure they are not currently involved in any conflicting business ventures. They should also be aware that this restriction applies not only to themselves but also to a wide range of related individuals and entities associated with the franchise ownership.