What is the Designated Area for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
B. DESIGNATED AREA. The "Designated Area" means the following area:
If the Designated Area is not identified as of the date of this Franchise Agreement, we will determine the Designated Area when you sign the lease for the Authorized Location. The Designated Area will be an area of up to 3 driving miles from the Authorized Location as we determine in our sole judgment after a review of relevant factors (see Section 2.C).
The Designated Area may overlap with designated areas of other Aira Fitness Businesses. In the overlapping areas, each Aira Fitness Business is permitted to market and solicit for members (see Section 6.B). Once identified by us, the Designated Area is fixed for the initial term of the Franchise Agreement unless you relocate the Aira Fitness Business and upon renewal or transfer (see Sections 4.B, 5.G, and 12.C). The driving miles are fixed as of the date the Designated Area is determined by us based on our mapping program used at the time the Designated Area is determined (currently, ESRI). No Designated Area will be enlarged due to any future road construction or other alteration.
- C.
Designated Area.
The Preliminary Designated Area identified on the Summary Page, if any, is the general location where you intend to secure a site for the Aira Fitness Business.
If a Preliminary Designated Area isspecified on the Summary Page, we will not grant anyone else the right to develop or operate an Aira Fitness Business in the Preliminary Designated Area for ninety (90) days from the Effective Date of this Agreement.
Once the Authorized Location has been identified, you hereby authorize us to define in Attachment A a "Designated Area" around the Authorized Location; provided that such Designated Area will be substantially the same as the Preliminary Designated Area in terms of size, shape and/or demographics.
If the Authorized Location is not within the Preliminary Designated Area, the Designated Area will be defined by us based on our current criteria for size, demographics and topographical features.
Once defined in Attachment A, your Designated Area will remain constant throughout the initial term of this Agreement (unless you relocate the Aira Fitness Business and upon renewal or transfer).
During the term of this Agreement and provided you are in compliance with the terms of this Agreement, neither we nor our affiliates will develop or operate, or grant to anyone else the right to develop or operate an Aira Fitness Business that is physically located in the Designated Area (other than at Special Sites, as described in Section 2.D).
You also acknowledge and agree that certain locations within and outside the Designated Area are by their nature unique and separate in character from sites generally developed as Aira Fitness Businesses. As a result, you agree
that the following locations ("Special Sites") are excluded from the Designated Area and we have the right to develop, license or franchise Aira Fitness Businesses within such locations: (1) military bases; (2) public transportation facilities, including, without limitation, airports, railway stations, limited access highway travel plazas and other transportation terminals; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) hotels, resorts or similar short-term lodging; (6) apartment or condominium complex; and (7) corporate office buildings or office parks.
Upon relocation of your Aira Fitness Business for any reason, we may modify your Designated Area, in our sole judgment, to take into account the designated areas of neighboring Aira Fitness Businesses and other factors.
Additionally, in the event of a transfer, we have the unilateral right to change or modify the boundaries of the Designated Area under the new franchise agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Designated Area is determined when the franchisee signs the lease for the Authorized Location. The Designated Area will be an area of up to 3 driving miles from the Authorized Location, as determined by Aira Fitness after reviewing relevant factors. This area may overlap with other Aira Fitness Businesses, allowing each to market and solicit members in those overlapping areas. Once identified, the Designated Area remains fixed for the initial term of the Franchise Agreement, unless the franchisee relocates or upon renewal or transfer. The driving miles are fixed based on the mapping program (currently ESRI) used when the Designated Area is determined, and will not be enlarged due to future road construction or alterations.
The Preliminary Designated Area, if specified on the Summary Page, indicates the general location where the franchisee intends to secure a site. Aira Fitness will not grant anyone else the right to develop or operate an Aira Fitness Business in this preliminary area for 90 days from the Effective Date of the agreement. Once the Authorized Location is identified, Aira Fitness will define the Designated Area in Attachment A, aiming for it to be substantially the same as the Preliminary Designated Area in terms of size, shape, and demographics. If the Authorized Location falls outside the Preliminary Designated Area, Aira Fitness will define the Designated Area based on their current criteria for size, demographics, and topographical features.
During the term of the agreement, and provided the franchisee is in compliance, Aira Fitness and its affiliates will not develop, operate, or grant others the right to develop or operate an Aira Fitness Business physically located within the Designated Area, except at Special Sites. These Special Sites, which are excluded from the Designated Area, include military bases, public transportation facilities, sports facilities, student unions, hotels, apartment complexes, and corporate office buildings. This means that while a franchisee has some territorial protection, Aira Fitness retains the right to establish locations in these specific venues, even within the franchisee's Designated Area.
Upon relocation of an Aira Fitness Business, Aira Fitness may modify the Designated Area to account for neighboring Aira Fitness Businesses and other factors. In the event of a transfer of the franchise, Aira Fitness has the unilateral right to change or modify the boundaries of the Designated Area under the new franchise agreement. This modification, if any, will be noted in the new franchise agreement issued with respect to the transfer. This highlights that the Designated Area is not permanently fixed and can be subject to change under certain circumstances, such as relocation or transfer of ownership.