If the Designated Area for an Aira Fitness franchise is not identified in the Franchise Agreement, when will it be determined, and what factors influence Aira Fitness's decision?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Designated Area is not identified as of the date of this Franchise Agreement, we will determine the Designated Area when you sign the lease for the Authorized Location. The Designated Area will be an area of up to 3 driving miles from the Authorized Location as we determine in our sole judgment after a review of relevant factors (see Section 2.C).
The Designated Area may overlap with designated areas of other Aira Fitness Businesses. In the overlapping areas, each Aira Fitness Business is permitted to market and solicit for members (see Section 6.B). Once identified by us, the Designated Area is fixed for the initial term of the Franchise Agreement unless you relocate the Aira Fitness Business and upon renewal or transfer (see Sections 4.B, 5.G, and 12.C). The driving miles are fixed as of the date the Designated Area is determined by us based on our mapping program used at the time the Designated Area is determined (currently, ESRI). No Designated Area will be enlarged due to any future road construction or other alteration.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if the Designated Area is not specified in the Franchise Agreement, Aira Fitness will determine it when the franchisee signs the lease for the Authorized Location. The Designated Area will be an area of up to 3 driving miles from the Authorized Location.
The determination of the Designated Area is made in Aira Fitness's sole judgment after reviewing relevant factors. While the FDD does not explicitly list these factors, it does state that if the Authorized Location is not within the Preliminary Designated Area, the Designated Area will be defined based on Aira Fitness's current criteria for size, demographics, and topographical features. This suggests that these elements are important considerations.
It is important to note that the Designated Area may overlap with other Aira Fitness Businesses, and each business is permitted to market and solicit members in those overlapping areas. Once Aira Fitness defines the Designated Area, it remains fixed for the initial term of the Franchise Agreement, unless the franchisee relocates or upon renewal or transfer. The driving miles are fixed as of the date the Designated Area is determined by Aira Fitness based on their mapping program used at the time (currently, ESRI), and will not be enlarged due to future road construction or other alterations.