Does the Aira Fitness FDD state that the earnings thresholds for noncompetition covenants are adjusted for inflation?

According to the 2025 Aira Fitness Franchise Disclosure Document, specifically within the addendum for the state of Washington, there is a mention of earnings thresholds related to noncompetition covenants being adjusted for inflation. The document states that a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee if their annualized earnings from the party seeking enforcement exceed $250,000 per year. This amount, according to the FDD, will be adjusted annually for inflation.

This provision is important for prospective Aira Fitness franchisees in Washington because it sets a clear financial threshold for the enforceability of non-compete agreements concerning independent contractors. If an independent contractor's earnings do not exceed the specified amount (as adjusted for inflation), the non-compete agreement is not enforceable. This could provide franchisees with more flexibility in hiring and managing independent contractors.

It is important to note that this specific clause applies only in Washington state due to state-specific laws. Franchisees in other states may be subject to different regulations regarding non-competition agreements. Therefore, prospective Aira Fitness franchisees should carefully review the addenda specific to their state to understand the applicable laws and regulations.