How does the Aira Fitness franchisor's assistance with site selection in Item 11 relate to the franchisee's responsibility for site acquisition within the designated area in Item 12?
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, Item 11 outlines the franchisor's assistance with site selection, while Item 12 details the franchisee's responsibility for acquiring a site within a designated area. Aira Fitness provides franchisees with site selection criteria and general design requirements before they open their business. The franchisee is responsible for selecting a general geographic area, referred to as the "Preliminary Designated Area," in which they intend to operate. This area is identified in the Franchise Agreement.
The franchisee must then acquire a site for their Aira Fitness Business within this Preliminary Designated Area within 90 days of signing the Franchise Agreement. Once the location is approved by Aira Fitness, it becomes the "Authorized Location," and a Designated Area is assigned around it. This Designated Area will be a minimum radius of 1 mile and a maximum radius of 3 miles from the Authorized Location. Aira Fitness considers factors like population density, cultural demographics, household income, growth trends, and geographic boundaries when defining the Designated Area.
While Aira Fitness provides site selection criteria and must approve the final site, the franchisee bears the primary responsibility for finding and acquiring a suitable location within the Preliminary Designated Area. The franchisor's approval ensures that the site meets their standards, but the onus of securing the location and complying with the 90-day acquisition timeline rests on the franchisee. Failure to acquire an acceptable site within the specified time frame may result in termination of the Franchise Agreement.
It is important to note that the franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. Aira Fitness and its affiliates retain the right to operate businesses offering fitness services under different trademarks within and outside the Designated Area. This highlights the importance of selecting a strong location and effectively marketing the Aira Fitness Business to compete in the local market.