Does the Aira Fitness franchise agreement allow Aira Fitness to designate the Authorized Location and Designated Area?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Authorized Location.
You must operate the Aira Fitness Business only at the location identified, or to be identified on the Summary Page (the "Authorized Location").
If the Authorized Location is not known at the time this Agreement is signed, you must acquire an acceptable site for the Aira Fitness Business premises no later than ninety (90) days from the Effective Date of this Agreement, at which time you authorize us to insert the Authorized Location on the Summary Page.
You must identify a site for the Aira Fitness Business that meets our site selection criteria and that is located within the Preliminary Designated Area identified in the Summary Page (see Section 5.A).
You may not use the Aira Fitness Business premises or Authorized Location for any purpose other than the operation of an Aira Fitness Business during the term of this Agreement.
- 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).
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness has the authority to designate both the Authorized Location and the Designated Area for a franchise. The franchisee must operate their Aira Fitness Business only at the location identified on the Summary Page as the "Authorized Location." If the Authorized Location is not yet known when the agreement is signed, the franchisee has 90 days from the agreement's effective date to find an acceptable site that meets Aira Fitness's criteria and is within the Preliminary Designated Area. Once a site is secured, Aira Fitness is authorized to insert the Authorized Location on the Summary Page.
Regarding the Designated Area, Aira Fitness defines this area in Attachment A once the Authorized Location has been identified. Ideally, the Designated Area should be substantially similar to the Preliminary Designated Area in terms of size, shape, and demographics. However, if the Authorized Location falls outside the Preliminary Designated Area, Aira Fitness will define the Designated Area based on its current criteria for size, demographics, and topographical features. This Designated Area remains constant throughout the initial term of the agreement, unless the franchisee relocates.
This arrangement gives Aira Fitness significant control over where a franchisee can operate and the surrounding territory they can market to. While the franchisee has some initial input by identifying a site within the Preliminary Designated Area, the final decision on both the Authorized Location and the Designated Area rests with Aira Fitness. This could be a point of negotiation for prospective franchisees, especially if they have specific locations in mind or concerns about the size and demographics of the Designated Area. Franchisees also need to be aware that Aira Fitness can operate or franchise other Aira Fitness Businesses at "Special Sites" within the Designated Area, such as military bases or airports.