Is an Aira Fitness franchisee allowed to divert former business or customers to a competitive business after termination?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.2 Developer specifically acknowledges that, pursuant to this Agreement, Developer will have access to the Confidential Information. Accordingly, Developer covenants that Developer and its Owners shall not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, or entity:
- (b) directly or indirectly divert or attempt to divert any former business or customer of a Aira Fitness Center to any competitive business;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee is restricted from diverting former customers to a competitive business for a period of two years after the termination or expiration of the franchise agreement. This restriction applies to the franchisee, their owners, and other involved parties.
Specifically, the franchisee (or 'Developer' as referenced in the document) is prohibited from directly or indirectly diverting or attempting to divert any former business or customer of an Aira Fitness Center to any competitive business. This post-termination covenant is in place regardless of the cause of termination.
This non-compete agreement is designed to protect Aira Fitness's customer base and business interests. However, the document also notes that these restrictions may be modified by a court to ensure they are valid and enforceable. This acknowledges the varying public policies across different jurisdictions and ensures the agreement remains fair and legally sound.