What is the restriction on Aira Fitness granting others the right to develop or operate an Aira Fitness Business in the Preliminary Designated Area?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
a. The Preliminary Designated Area identified on the Summary Page, if any, is the general location where you intend to secure a site for the Aira Fitness Business. If a Preliminary Designated Area isspecified on the Summary Page, we will not grant anyone else the right to develop or operate an Aira Fitness Business in the Preliminary Designated Area for ninety (90) days from the Effective Date of this Agreement. Once the Authorized Location has been identified, you hereby authorize us to define in Attachment A a "Designated Area" around the Authorized Location; provided that such Designated Area will be substantially the same as the Preliminary Designated Area in terms of size, shape and/or demographics. If the Authorized Location is not within the Preliminary Designated Area, the Designated Area will be defined by us based on our current criteria for size, demographics and topographical features. Once defined in Attachment A, your Designated Area will remain constant throughout the initial term of this Agreement (unless you relocate the Aira Fitness Business and upon renewal or transfer). During the term of this Agreement and provided you are in compliance with the terms of this Agreement, neither we nor our affiliates will develop or operate, or grant to anyone else the right to develop or operate an Aira Fitness Business that is physically located in the Designated Area (other than at Special Sites, as described in Section 2.D). 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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a Preliminary Designated Area is specified on the Summary Page, Aira Fitness will not grant anyone else the right to develop or operate an Aira Fitness Business in that area for 90 days from the Effective Date of the Franchise Agreement. This gives the franchisee a limited period to secure a suitable site within the Preliminary Designated Area.
Once the Authorized Location (the specific site for the Aira Fitness Business) is identified, Aira Fitness will define a Designated Area around it in Attachment A. This Designated Area should be substantially the same as the Preliminary Designated Area in terms of size, shape, and demographics. However, if the Authorized Location falls outside the Preliminary Designated Area, Aira Fitness will define the Designated Area based on its criteria for size, demographics, and topographical features.
During the term of the Franchise Agreement, provided the franchisee is in compliance, Aira Fitness and its affiliates will not develop, operate, or grant to anyone else the right to develop or operate an Aira Fitness Business physically located within the Designated Area. However, this restriction does not apply to Special Sites, such as military bases, transportation facilities, sports facilities, college campuses, hotels, apartment complexes, and corporate office buildings, where Aira Fitness reserves the right to develop or franchise businesses.
This territorial protection offers a degree of exclusivity to the franchisee, but it's limited to the defined Designated Area and excludes Special Sites. A prospective franchisee should carefully consider the definition and scope of the Designated Area, as well as the potential impact of Special Sites, when evaluating the franchise opportunity.