Does the Aira Fitness non-compete agreement apply to former members?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
During Term.
During the term of this Agreement, 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) in the United States, except another Aira Fitness Business pursuant to a valid franchise agreement with us.
After Termination.
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.
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 address former members. During the term of the franchise agreement, the franchisee and other covered persons are prohibited from diverting any Aira Fitness member, potential member, or former member to another exercise facility, with the exception of another Aira Fitness location. This means that while the franchise agreement is active, franchisees cannot actively try to take members, potential members, or former members to a competing fitness business.
After the termination, expiration, or transfer of the franchise agreement, the non-compete restrictions continue for a period of two years. During this time, covered persons are still prohibited from diverting any Aira Fitness member, potential member, or former member to another exercise facility, with the same exception for other Aira Fitness locations. This post-term restriction also applies to any owner for two years after they cease to be an owner.
These restrictions are in place to protect Aira Fitness and its franchise system by preventing franchisees from using the information, materials, and training they receive to compete with the brand. The FDD states that the company considers these restrictions reasonable and necessary to protect Aira Fitness's ability to enter new markets and prevent unfair competition. The agreement also states that the franchisee acknowledges they have other opportunities to earn a living and that these restrictions will not prevent them from engaging in a lawful trade or business.