What is the geographic scope of the non-compete restriction for Aira Fitness Developers after the agreement expires or terminates?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ess/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.
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- After Termination. For a period of two years after the transfer, expiration or termination of this Agreement (and with respect to any Owner, for a period of two years after such person ceases to be an Owner, regardless of the reason), 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) that is located at or within a 10-mile radius of the Authorized Location, that is located within a 10-mile radius of any other Aira Fitness Business in operation or under construction, or that is located in the Designated Area of any other AIRA FITNESS franchisee. The two-year period described in this paragraph will be tolled during any period of noncompliance.
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- Reasonableness. You agree that the scope of the prohibitions stated in this Section 11.D is reasonable and necessary to protect us and the System (including other franchisees of the System). You agree that the prohibitions in this Section 11.D must be very broad in order to prevent you from taking information, materials and training we are providing to you on an ongoing basis and using them to either compete with us, or preempt or otherwise restrict our ability to enter new markets. You agree that the time period and the scope of the prohibitions stated in this Section 11.D are the reasonable and necessary time and distance needed to protect us if this Agreement expires or is terminated for any reason. You also agree that you have many other opportunities available to earn a living, and that these restrictions will not preclude you from engaging in a lawful trade or business for which you otherwise are qualified.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, after the agreement terminates or expires, a Developer is restricted from engaging in competitive business activities for two years. This restriction applies to owning, operating, leasing, franchising, or being involved with any other exercise facility.
The geographic scope of this restriction includes the area at or within a 10-mile radius of the Authorized Location. It also extends to a 10-mile radius of any other Aira Fitness Business in operation or under construction. Furthermore, the non-compete applies to the Designated Area of any other Aira Fitness franchisee.
This means that after leaving the Aira Fitness system, a former franchisee cannot open a competing fitness business within these specified zones. This restriction is in place to protect Aira Fitness's market and other franchisees. The agreement states that the scope of these prohibitions is considered reasonable and necessary to protect Aira Fitness and its system, including other franchisees. The agreement also states that the franchisee acknowledges they have other opportunities to earn a living and that these restrictions will not prevent them from engaging in a lawful trade or business.