For how long after termination or expiration of the Aira Fitness franchise is the non-competition covenant in effect?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 11.D.3. of the Franchise Agreement on "Non-Compete Covenants – After Termination" is amended by the addition of the following language to the original language that appears therein:
"Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota."
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
The 2025 Aira Fitness FDD includes an addendum to the franchise agreement for the state of North Dakota. According to this addendum, the standard non-compete covenants included in the Aira Fitness franchise agreement are generally unenforceable in North Dakota.
This means that if a franchisee operates an Aira Fitness location in North Dakota, the typical restrictions preventing them from opening a competing business after the termination or expiration of their franchise agreement may not apply. This could allow a former franchisee to more easily start a competing business in the same area after their franchise agreement ends.
It is important to note that this addendum specifically addresses the enforceability of non-compete covenants in North Dakota. The FDD does not provide information regarding the duration or enforceability of these covenants in other states. A prospective franchisee should consult the franchise agreement and any applicable state-specific addenda to understand the non-compete obligations in their specific location. They may also wish to seek legal counsel to fully understand the implications of these covenants.