Are Aira Fitness franchisees, owners, and affiliates bound by covenants in each Franchise Agreement they enter into?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise specified, the term "Covered Person" as used in this Section 10.D includes, collectively and individually, your Owners and all guarantors, officers, directors, members, managers, partners, as the case may be, and holders of any ownership interest in you.
We may require you to obtain from your individuals identified in the preceding sentence a signed non-compete agreement in a form satisfactory to us that contains the non-compete provisions of this Section 11.D.
During Term.
During the term of this Agreement, Covered Persons must not directly or indirectly, for themselves or through, on behalf of or in conjunction with any individual or business entity: (i) divert any Aira Fitness Business member, potential Aira Fitness Business member or former Aira Fitness Business member to any exercise facility except another Aira Fitness Business; or (ii) own, operate, lease, franchise, engage in, be connected with, have any interest in, or assist any person or entity engaged in any other exercise facility (including, but not limited to a 24/7 fitness center, studio or exercise facility; a fitness center, studio or exercise facility featuring keycard access or a structured fitness/training program or complete body overhaul program for individuals) in the United States, except another Aira Fitness Business pursuant to a valid franchise agreement with us.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees, their owners, and affiliates are bound by certain covenants within the Franchise Agreement. Specifically, these individuals, referred to as "Covered Persons," which includes owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest, are subject to non-compete agreements.
During the term of the Franchise Agreement, Covered Persons are prohibited from diverting any Aira Fitness Business member, potential member, or former member to any other exercise facility except another Aira Fitness location. They are also restricted from owning, operating, leasing, franchising, or being connected with any other exercise facility in the United States, with the exception of another Aira Fitness Business operating under a valid franchise agreement.
After the termination of the agreement, these non-competition covenants continue to apply. Aira Fitness may also require these individuals to sign a separate non-compete agreement to further ensure compliance. This is a fairly standard practice in franchising to protect the brand and customer base.