For how long after the termination or expiration of the Aira Fitness Multi-Unit Development Agreement are non-competition covenants in effect?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 9 of the Multi-Unit Development Agreement on "Post-Termination Covenants" 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)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the enforceability and terms of non-compete covenants following the termination or expiration of the Multi-Unit Development Agreement can vary by state. For example, in North Dakota, the addendum to the Multi-Unit Development Agreement states that covenants not to compete are generally unenforceable. This means that in North Dakota, an Aira Fitness franchisee may not be restricted from competing with Aira Fitness after the agreement ends.
However, the FDD includes addenda for several states, and the specific terms regarding non-compete agreements are addressed individually in these addenda. The information provided does not specify the duration of non-compete covenants for all states, only noting their general unenforceability in North Dakota.
Therefore, a prospective Aira Fitness franchisee should carefully review the addendum specific to their state to understand the enforceability and duration of any non-compete covenants. If the addendum does not address this issue, it is essential to discuss this point with the franchisor to gain clarity on the applicable terms and conditions in their specific location. This is a critical consideration, as the ability to operate a similar business after the Aira Fitness agreement concludes can significantly impact the franchisee's future business opportunities.