Does Aira Fitness have the right to reduce the scope of any covenant in Section 11.D?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to and without limiting our rights and remedies under this Agreement, any other agreement and applicable law, upon any events upon which we may terminate this Agreement under this Article 14, we may, at our sole option and upon delivery of written notice to you, elect to take any or all of the following actions without terminating this Agreement:
- (1) temporarily or permanently reduce the size of the Designated Area, in which even the restrictions upon Paragraph 2.C. will not apply in the geographic area that was removed from the Designated Area;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, in the event of a franchisee default, Aira Fitness has the option to temporarily or permanently reduce the size of the designated area. If Aira Fitness reduces the designated area, the restrictions outlined in Paragraph 2.C will not apply to the removed geographic area. This action can be taken without terminating the franchise agreement.
This means that if a franchisee fails to meet the obligations of the franchise agreement, Aira Fitness can reduce the franchisee's exclusive territory. The area removed from the designated territory would then be free for Aira Fitness to operate or franchise another Aira Fitness business, or another concept.
This clause protects Aira Fitness by allowing them to regain control over underperforming territories without fully terminating the agreement. For a franchisee, this highlights the importance of adhering to the franchise agreement to maintain the full scope of their designated area.