Does Aira Fitness reserve the right to develop or operate Aira Fitness Businesses outside the Designated Area?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that we and our affiliates have the right to develop and operate and grant others the right to develop and operate Aira Fitness Businesses outside the Designated Area, regardless of their proximity to the Designated Area or any negative impact they may have on your Aira Fitness Business.
We and our affiliates also have the right to develop and operate and grant others the right to develop and operate exercise facilities and other businesses under a different trademark within and outside the Designated Area which may be similar to or competitive with Aira Fitness Businesses.
We will not operate, franchise, or license the operation of an exercise facility offering 24/7 keycard access and substantially similar to an Aira Fitness Business in your Designated Area, except in connection with our acquisition of a multi-unit brand.
If we acquire a multi-unit brand (through a stock purchase, asset purchase, merger, or otherwise), we or our affiliate may operate, franchise, or license the operation of the acquired brand within and outside the Designated Area, without offering any rights or compensation to you.
You do not have any right to sublicense or sub-franchise within or outside of the Designated Area and under this Agreement you do not have the right to operate more than one Aira Fitness Business within the Designated Area without our prior written approval and must sign a separate Franchise Agreement for any additional Aira Fitness Business.
- D.
Reserved Rights.
We reserve to ourselves all other rights to use the System and Marks anywhere and in any manner including, without limitation, the right to offer, sell or distribute items such as training videos, equipment, athletic gear, etc., associated with the System (now or in the future) or identified by the Marks, or any other trademarks, service marks or trade names, through any distribution channels or methods, without compensation to any franchisee.
These distribution channels or methods may include, without limitation, retail stores, mail order, wholesale or the internet (or any other existing or future form of electronic commerce).
These rights also include the right to provide and license third parties to provide ancillary programs developed by or for us or our affiliates at host locations (such as apartments, condominium associations, corporate offices, schools, community Aira Fitness Business and other gyms and exercise facilities), within and outside your Designated Area and without compensation to you.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness retains the right to develop and operate Aira Fitness businesses outside of a franchisee's designated area. This means that even if a franchisee has a specific territory, Aira Fitness can still establish other locations nearby, potentially impacting the franchisee's business. Aira Fitness also reserves the right to allow others to develop and operate Aira Fitness businesses outside the designated area.
Furthermore, Aira Fitness and its affiliates can develop, operate, and franchise other exercise facilities under different trademarks, both within and outside the franchisee's designated area. These facilities may be similar to or competitive with the franchisee's Aira Fitness business. However, Aira Fitness will not operate, franchise, or license an exercise facility offering 24/7 keycard access that is substantially similar to an Aira Fitness Business in the franchisee's Designated Area, unless it acquires a multi-unit brand. If Aira Fitness acquires a multi-unit brand, it may operate, franchise, or license that brand within and outside the Designated Area without offering any rights or compensation to the franchisee.
This reservation of rights extends to the use of the Aira Fitness system and marks. Aira Fitness can offer, sell, or distribute items like training videos and athletic gear through various channels, including retail stores and the internet, without compensating franchisees. They can also provide and license third parties to provide ancillary programs at various locations, such as apartments and corporate offices, within and outside the franchisee's designated area, again without compensation. These terms highlight that while franchisees are granted a designated area, Aira Fitness maintains significant control over its brand's development and distribution, which could lead to increased competition for franchisees.