What happens once the location of the Aira Fitness Business is approved?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
reliminary 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"). These Special Sites are excluded from the Designated Area and we have the right to develop, license or franchise Aira Fitness Businesses at these locations within or outside your Designated Area: (1) military bases; (2) public transportation facilities, including, without limitation, airports,railway stations,limited access highwaytravelplazas andothertransportation terminals; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) hotels, resorts or similar short-term lodging; (6) apartment or condominiumcomplex; and (7) corporate office buildings or office parks.
We reserve to ourselvesallotherrightsto use the SystemandMarks anywhere and in anymannerincluding, 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). For instance, we currently offer online member enrollment through www.airafitness.com and Groupon.
There are no restrictions on our rights to solicit or accept orders inside or outside of your Designated Area. We are not required to compensate you for soliciting or accepting orders in the Designated Area.
Continuation of your Designated Area is dependent on achieving certain sales volumes or market penetration.
Minimum Membership Requirement
Beginning on the one-year anniversary of opening for business, you must, at all times, have at least 150 members ("Minimum Membership Requirement"). If, during your second year of operation and thereafter, you do notmaintainthe Minimum MembershipRequirementfor 2 consecutivemonths, we may: (1) require your Principal and General Managers we determine to attend additional training programs; or (2) provide on-site assistance and consultation at your expense. If we provide any additional training, assistance or consultation, you must cover all costs and expensesfor such training, assistance or consultation. If, during your second year of operation and thereafter, you do not maintain the Minimum Membership Requirement for 6 consecutive months, we may eliminate your territorial protection or terminate the Franchise Agreement.
Minimum Monthly Gross Sales Requirement
Beginning on the one-year anniversary of opening for business, you must maintain Gross Sales of at least $10,000 per month ("Minimum Monthly Gross Sales Requirement").
Source: Item 12 — **TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, once the location of your Aira Fitness Business is approved, it becomes the "Authorized Location," and the applicable Designated Area will be filled in at Attachment A to your Franchise Agreement. The Designated Area, which is assigned after you acquire the site, will be a radius of 1 to 3 miles from the Authorized Location. The specific size of the radius depends on the nature of the area and is further defined by zip codes, man-made or natural boundaries, political boundaries, or traffic patterns. Factors considered in defining the Designated Area include cultural demographics, household composition and income, population growth trends, the density of residential and business entities, and geographic boundaries. Aira Fitness has sole discretion regarding the relevance of these factors.
While you will not receive an exclusive territory, Aira Fitness states that as long as you comply with the Franchise Agreement and meet the minimum membership requirements, they will not establish another Aira Fitness Business or franchise another party to do so within your Designated Area. However, this protection does not extend to Special Sites such as military bases, transportation facilities, sports facilities, college campuses, hotels, apartment complexes, and corporate office buildings, where Aira Fitness reserves the right to develop or franchise Aira Fitness Businesses. Furthermore, Aira Fitness and its affiliates retain the right to operate other fitness businesses under different trademarks, even if they compete with your Aira Fitness Business, both within and outside your Designated Area.
It is important to note that the continuation of your Designated Area depends on achieving certain sales volumes or market penetration. Specifically, beginning one year after opening, you must maintain at least 150 members and minimum monthly gross sales of $10,000. Failure to meet these requirements for a specified period could result in Aira Fitness eliminating your territorial protection or terminating the Franchise Agreement. This highlights the importance of carefully evaluating the market potential of your Designated Area and developing a robust business plan to meet these minimum performance thresholds.