What is the dependency between identifying the Authorized Location and defining the Designated Area for an Aira Fitness franchise?

According to the 2025 Aira Fitness Franchise Disclosure Document, the identification of the Authorized Location is a prerequisite for defining the Designated Area. The franchisee must operate their Aira Fitness Business only at the Authorized Location, which is identified on the Summary Page of the Franchise Agreement. If the Authorized Location is not known when the agreement is signed, the franchisee has 90 days from the Effective Date to secure an acceptable site that meets Aira Fitness's site selection criteria and is within the Preliminary Designated Area.

Once the Authorized Location is identified, Aira Fitness is authorized to define the Designated Area around it in Attachment A. Ideally, this Designated Area should be substantially similar to the Preliminary Designated Area in terms of size, shape, and demographics. However, if the Authorized Location falls outside the Preliminary Designated Area, Aira Fitness will define the Designated Area based on its current criteria for size, demographics, and topographical features. The Designated Area, once defined, remains constant throughout the initial term of the agreement, unless the franchisee relocates.

The Designated Area is important because Aira Fitness agrees not to develop or operate, nor grant to anyone else the right to develop or operate, another Aira Fitness Business within the franchisee's Designated Area during the term of the agreement, with exceptions for Special Sites like military bases or transportation facilities. This provides the franchisee with a degree of territorial protection, although Aira Fitness retains rights to develop other businesses, including exercise facilities under different trademarks, within the Designated Area. The Designated Area will be an area of up to 3 driving miles from the Authorized Location as Aira Fitness determines in its sole judgment after a review of relevant factors.

For a prospective Aira Fitness franchisee, this means that securing an appropriate location is the first critical step. The franchisee should work closely with Aira Fitness to ensure the chosen site meets their criteria and falls within the desired Preliminary Designated Area. The franchisee should also understand how the final Designated Area will be determined and what protections it offers, as well as the exceptions for Special Sites and other businesses that Aira Fitness may operate within or outside the Designated Area. Understanding these factors is crucial for assessing the potential market and competition for the Aira Fitness Business.