What are the Aira Fitness franchisee's obligations regarding site selection in Item 12, and how does this relate to the franchisor's assistance in Item 11?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 12 TERRITORY
If we have not approved a site for your Aira Fitness Business at the time you execute the Franchise Agreement, you will select a general geographic area in which you intend to operate your Aira Fitness Business ("Preliminary Designated Area"). Your Preliminary Designated Area will be identified on the Summary Pages of the Franchise Agreement.Within 90 days after the Franchise Agreement is signed, you must acquire a site for the Aira Fitness Businesswithin the Preliminary Designated Area. Once the location of your Aira FitnessBusiness is approved, the location ("Authorized Location") and the applicable Designated Area will be filled in at Attachment A to your Franchise Agreement.
Once you have acquired the site, we will assign a Designated Area ("Designated Area") for your Aira Fitness Business. The Designated Area will be a minimum radius of 1 mile and a maximumradius of 3 miles from the Authorized Location, depending on the nature of the area in which the Aira FitnessBusiness is located, andfurther defined byzip codes,man-made or naturalboundaries, politicalboundaries, ortraffic patterns. The following factors will be considered in defining a Designated Area, in our sole discretion as to the relevance, in addition to population density: cultural demographics, household composition and income, growth trends of population, the density of residential and business entities, and geographic boundaries.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We are not required to pay you if we exercise any reserved rights within your Designated Area. However, as long as you are in compliance with the Franchise Agreement and meet the minimum membership requirements described below, we will not establish an Aira Fitness Business, nor license or franchise another party the right to establish an Aira Fitness Business within your Designated Area (except Special Sites, as defined below).
We and our affiliates also have the right to develop and operate, and grant others the right to develop and operate, businesses offering fitness services and other businesses under a different trademark within and outside the Designated Area, which may be similar to or competitive with Aira Fitness Businesses.
Certain locations are by their natureuniqueand separate in character from sites generally developed asAira Fitness Businesses ("Special Sites").
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding site selection, as detailed in Item 12, which are supported by the franchisor's assistance described in Item 11. Franchisees must select a general geographic area, referred to as the "Preliminary Designated Area," in which they intend to operate their Aira Fitness Business; this area is identified in the Franchise Agreement's Summary Pages. Within 90 days of signing the Franchise Agreement, the franchisee must acquire a site for their Aira Fitness Business within this Preliminary Designated Area. Once the site is acquired and approved, it becomes the "Authorized Location," and a Designated Area is assigned, ranging from 1 to 3 miles in radius from the Authorized Location. The franchisor has sole discretion in defining this area, considering factors like population density, cultural demographics, household income, growth trends, and geographic boundaries.
Item 11 outlines the franchisor's assistance with site selection. Before the Aira Fitness Business opens, the franchisor will provide site selection criteria and general design requirements. The franchisee is responsible for identifying a site within the Preliminary Designated Area (or nearby if no sites are available within the designated area) and submitting it to Aira Fitness for approval. The franchisor will evaluate the site based on factors such as rent amount, population and demographics of the surrounding area, and competition. Aira Fitness will then notify the franchisee of their decision within 15 days of receiving all requested information about the site.
The franchisee must acquire a site within 90 days of signing the Franchise Agreement and open the Aira Fitness Business within 180 days of signing. Failure to meet these deadlines may result in the termination of the Franchise Agreement. However, Aira Fitness's site approval does not guarantee a certain sales volume or level of profitability; it only means the site meets their minimum criteria. The typical time frame between signing the Franchise Agreement and opening the business is one to six months, depending on factors like site selection timing, leasing and financing arrangements, leasehold improvements, and local requirements.
While Aira Fitness provides site selection criteria and evaluates potential locations, the franchisee bears the primary responsibility for finding and securing an appropriate site within the designated timeframe. This division of responsibilities is typical in franchising, where the franchisor offers guidance and approval, but the franchisee manages the local execution. Prospective franchisees should carefully review the site selection criteria provided by Aira Fitness and understand the factors the franchisor considers during the approval process to ensure they choose a viable location.