What is the geographic scope of the non-compete for Aira Fitness after termination, in relation to other franchisees' Designated Areas?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, after the termination, expiration, or transfer of the Franchise Agreement, the franchisee and their owners are subject to a non-compete agreement for two years. This restriction applies to prevent them from engaging in or being connected with any other exercise facility.
The geographic scope of this non-compete includes three specific areas: within a 10-mile radius of the franchisee's former Authorized Location, within a 10-mile radius of any other Aira Fitness Business in operation or under construction, or within the Designated Area of any other Aira Fitness franchisee. This means a franchisee cannot operate a competing business near their old location, near any existing or developing Aira Fitness location, or within another franchisee's protected territory.
This post-termination covenant aims to protect Aira Fitness's market and other franchisees by preventing former franchisees from using the knowledge and experience gained during their franchise term to unfairly compete. The agreement also prevents the franchisee from diverting Aira Fitness Business members, potential members, or former members to another exercise facility. The non-compete period is tolled during any period of noncompliance, meaning any violation extends the restriction period.