If Aira Fitness acquires a multi-unit brand, can they operate that brand within the Designated Area?

According to Aira Fitness's 2025 Franchise Disclosure Document, if Aira Fitness acquires a multi-unit brand, Aira Fitness or its affiliate has the right to operate, franchise, or license the operation of the acquired brand both within and outside of a franchisee's designated area. This can occur without offering any rights or compensation to the existing franchisee.

This clause means that even though a franchisee may have a designated area, Aira Fitness retains the right to introduce competition within that area through acquisition. The franchisee would not be entitled to any compensation or special consideration if this occurs. This is a significant risk for franchisees as it could directly impact their revenue and market share.

This type of clause is not uncommon in franchising, as franchisors often seek to maintain flexibility and control over their expansion strategies. However, it is crucial for prospective franchisees to understand the potential impact of such clauses on their investment and business operations. Franchisees should carefully consider the competitive landscape and market dynamics in their designated area, and discuss with Aira Fitness how they plan to manage potential conflicts or overlaps in the event of an acquisition.