Is an Aira Fitness Developer allowed to divert customers from an Aira Fitness Center to a competitive business?
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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- After Termination. For a period of two years after the transfer, expiration or termination of this Agreement (and with respect to any Owner, for a period of two years after such person ceases to be an Owner, regardless of the reason), 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) that is located at or within a 10-mile radius of the Authorized Location, that is located within a 10-mile radius of any other Aira Fitness Business in operation or under construction, or that is located in the Designated Area of any other AIRA FITNESS franchisee. The two-year period described in this paragraph will be tolled during any period of noncompliance.
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- Reasonableness. 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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, during the term of the agreement, a Covered Person, which includes the franchisee's Owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest, cannot divert any Aira Fitness Business member, potential member, or former member to any exercise facility except another Aira Fitness Business. This restriction applies directly or indirectly, whether for themselves or through another individual or business entity.
After the agreement terminates, the Developer and its Owners are prohibited for two years from diverting or attempting to divert any former business or customer of an Aira Fitness Center to any competitive business. This restriction applies within the Development Area or within a ten-mile radius of any existing Aira Fitness Center, except under a valid franchise agreement with Aira Fitness. The term 'Competitive Business' is defined as any fitness center, studio, or exercise facility.
These non-compete covenants are designed to protect Aira Fitness's confidential information, customer base, and market position. The FDD states that these restrictions are considered reasonable and necessary to protect Aira Fitness and its system, including other franchisees. Franchisees acknowledge that violating these covenants could result in legal action to enforce the terms of the agreement.