Does the franchisor's right to operate, administrate, develop, and change the Aira Fitness system modify any express limitations stated in the agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that we and our affiliates have the right to develop and operate and grant others the right to develop and operate Aira Fitness Businesses outside the Designated Area, regardless of their proximity to the Designated Area or any negative impact they may have on your Aira Fitness Business.
We and our affiliates also have the right to develop and operate and grant others the right to develop and operate exercise facilities and other businesses under a different trademark within and outside the Designated Area which may be similar to or competitive with Aira Fitness Businesses.
We will not operate, franchise, or license the operation of an exercise facility offering 24/7 keycard access and substantially similar to an Aira Fitness Business in your Designated Area, except in connection with our acquisition of a multi-unit brand.
If we acquire a multi-unit brand (through a stock purchase, asset purchase, merger, or otherwise), we or our affiliate may operate, franchise, or license the operation of the acquired brand within and outside the Designated Area, without offering any rights or compensation to you.
You do not have any right to sublicense or sub-franchise within or outside of the Designated Area and under this Agreement you do not have the right to operate more than one Aira Fitness Business within the Designated Area without our prior written approval and must sign a separate Franchise Agreement for any additional Aira Fitness Business.
- D.
Reserved Rights.
We reserve to ourselves all other rights to use the System and Marks anywhere and in any manner including, without limitation, the right to offer, sell or distribute items such as training videos, equipment, athletic gear, etc., associated with the System (now or in the future) or identified by the Marks, or any other trademarks, service marks or trade names, through any distribution channels or methods, without compensation to any franchisee.
These distribution channels or methods may include, without limitation, retail stores, mail order, wholesale or the internet (or any other existing or future form of electronic commerce).
These rights also include the right to provide and license third parties to provide ancillary programs developed by or for us or our affiliates at host locations (such as apartments, condominium associations, corporate offices, schools, community Aira Fitness Business and other gyms and exercise facilities), within and outside your Designated Area and without compensation to you.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchise agreement outlines several rights that Aira Fitness reserves, which may impact the franchisee's operational limitations. Aira Fitness retains the right to develop, operate, and grant others the right to develop and operate Aira Fitness businesses outside a franchisee's designated area, regardless of proximity or potential negative impact. They can also develop or franchise other exercise facilities under different trademarks, even if these are similar to or competitive with Aira Fitness businesses.
Specifically, Aira Fitness will not operate, franchise, or license a 24/7 keycard access exercise facility substantially similar to an Aira Fitness Business within the franchisee's designated area, unless it involves acquiring a multi-unit brand. If Aira Fitness acquires such a brand, they can operate, franchise, or license it within or outside the designated area without offering rights or compensation to the franchisee. The franchisee does not have the right to sublicense or sub-franchise and typically cannot operate more than one Aira Fitness Business within the designated area without prior written approval and a separate franchise agreement.
Aira Fitness also reserves all rights to use the system and marks, including selling items like training videos and athletic gear through any distribution channels without compensating franchisees. They can provide and license third parties to offer ancillary programs at various locations, even within a franchisee's designated area, without compensation. Furthermore, Aira Fitness can distribute products and services through alternative channels like supermarkets or the internet, establish businesses with similar offerings under different trademarks, acquire franchisors with competitive businesses, and implement multi-area marketing programs with mandatory policies. These rights allow Aira Fitness considerable flexibility in managing and expanding the brand, which could modify the limitations a franchisee might expect based solely on their initial agreement and designated area.