How does the Aira Fitness franchisor's assistance with site selection in Item 11 relate to the territory granted in Item 12?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Aira Fitness Business, we will:
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- Provide you with site selection criteria and general design requirements for your Aira Fitness Business (Franchise Agreement, Sections 5A and 5C)
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 must operate the Aira Fitness Business only at the location identified, or to be identified on the Summary Page (the "Authorized Location").
The parties acknowledge and agree that our site approval is not an assurance that the Aira Fitness Business will achieve a certain sales volume or level of profitability; it means only that the proposed site meets our minimum site selection criteria.
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Item 11 outlines the franchisor's pre-opening obligations, including providing site selection criteria. This assistance directly relates to Item 12, which defines the territory granted to the franchisee. The site selected by the franchisee, ideally within a 'Preliminary Designated Area,' must be approved by Aira Fitness. Once approved, this location becomes the 'Authorized Location,' around which a 'Designated Area' is assigned.
The 'Designated Area' is not an exclusive territory, as Aira Fitness retains the right to establish other outlets, including those under different trademarks, even within the vicinity of the franchisee's location. The size of the designated area ranges from a 1-mile to 3-mile radius from the 'Authorized Location.' The franchisor considers factors like population density, cultural demographics, household income, growth trends, and geographic boundaries when determining the 'Designated Area'.
Therefore, while Aira Fitness provides site selection assistance, the territory ultimately granted is subject to franchisor approval and is not exclusive. The franchisee must operate the Aira Fitness Business only at the 'Authorized Location'. The franchisor's site approval only means that the proposed site meets their minimum site selection criteria and is not an assurance that the Aira Fitness Business will achieve a certain sales volume or level of profitability.