What is the definition of 'exercise facility' according to the Aira Fitness non-compete agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ain from your individuals identified in the preceding sentence a signed non-compete agreement in a form satisfactory to us that contains the non-compete provisions of this Section 11.D.
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- During Term. 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.
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Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the non-compete agreement specifies what constitutes an 'exercise facility.' During the term of the agreement, franchisees and related parties cannot be involved with any other exercise facility except another Aira Fitness location. This includes owning, operating, or having any interest in such a facility.
The definition of 'exercise facility' is broad, encompassing a 24/7 fitness center, a studio, or any facility featuring keycard access. It also includes facilities with structured fitness or training programs, or complete body overhaul programs. This definition applies to any such facility in the United States.
After the termination of the franchise agreement, a 'Competitive Business' is defined as any fitness center, studio, or exercise facility. This definition is relevant to the post-termination non-compete obligations, restricting involvement in such businesses within a specified area. This means that after leaving the Aira Fitness system, franchisees are limited in their ability to operate or be associated with similar businesses, ensuring they do not directly compete with Aira Fitness.
These restrictions are in place to protect Aira Fitness's market share and confidential information. Prospective franchisees should carefully consider the scope and duration of these non-compete clauses, as they could significantly impact their future business opportunities in the fitness industry.