What factors are considered when defining the Designated Area for an Aira Fitness Business, besides population density?

According to Aira Fitness's 2025 Franchise Disclosure Document, several factors beyond population density are considered when defining a Designated Area for a franchise. These include cultural demographics, household composition and income, growth trends of population, the density of residential and business entities, and geographic boundaries. The Designated Area will be a minimum radius of 1 mile and a maximum of 3 miles from the Authorized Location. The franchisor has sole discretion as to the relevance of each factor.

For a prospective franchisee, this means that the area in which they will operate is not solely based on how many people live there. Aira Fitness also considers the types of people, their income levels, and how the population is changing. The presence of other businesses and the physical layout of the area also play a role. The Designated Area is defined by zip codes, man-made or natural boundaries, political boundaries, or traffic patterns.

It is important to note that franchisees do not receive an exclusive territory. They may face competition from other franchisees, outlets that Aira Fitness owns, or other channels of distribution or competitive brands that Aira Fitness controls. Aira Fitness is not required to compensate franchisees if they exercise any reserved rights within the Designated Area. However, as long as the franchisee is in compliance with the Franchise Agreement and meets the minimum membership requirements, Aira Fitness will not establish another Aira Fitness Business, nor license or franchise another party the right to establish an Aira Fitness Business within the Designated Area (except Special Sites).

These Special Sites are excluded from the Designated Area and Aira Fitness has the right to develop, license or franchise Aira Fitness Businesses at these locations within or outside the franchisee's Designated Area. Special Sites include: (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.