If an owner ceases to be an owner, does the non-compete agreement still apply to them for Aira Fitness?
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, the non-compete agreement does apply to former owners. Specifically, for a period of two years after an owner ceases to be an owner, regardless of the reason, they are still bound by the non-compete covenants.
During this two-year period, the former owner, referred to as a "Covered Person," is prohibited from directly or indirectly diverting any Aira Fitness Business member, potential member, or former member to another exercise facility (excluding another Aira Fitness Business). They are also restricted from owning, operating, leasing, franchising, engaging in, being connected with, having any interest in, or assisting any other exercise facility. This includes facilities like 24/7 fitness centers, studios, or those with keycard access or structured training programs.
The restrictions apply to any competitive fitness business located within a 10-mile radius of the Aira Fitness Authorized Location, any other Aira Fitness Business in operation or under construction, or within the Designated Area of any other Aira Fitness franchisee. The two-year non-compete period can be extended if the former owner violates the agreement, as the period is tolled during any period of noncompliance.
This provision ensures that former owners cannot leverage their knowledge and access to Aira Fitness's confidential information and customer base to unfairly compete with the franchise system after they are no longer affiliated with it. Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business opportunities.