What is the exception to the restriction on Aira Fitness developing or operating an Aira Fitness Business within the Designated Area?

According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness will not operate, franchise, or license the operation of an exercise facility offering 24/7 keycard access and substantially similar to an Aira Fitness Business in a franchisee's Designated Area. However, this restriction does not apply if Aira Fitness acquires a multi-unit brand.

Specifically, if Aira Fitness acquires a multi-unit brand through a stock purchase, asset purchase, merger, or other means, Aira Fitness or its affiliate has the right to operate, franchise, or license the operation of the acquired brand within and outside the Designated Area. This can be done without offering any rights or compensation to the existing franchisee.

This exception means that even though a franchisee is granted a Designated Area, Aira Fitness retains the right to introduce a competing business under a different brand if they acquire a multi-unit franchise system. This could significantly impact the franchisee's business, as a competing facility could be opened nearby without any compensation or consideration for the existing Aira Fitness franchise. Prospective franchisees should carefully consider this potential risk and its possible impact on their investment.