factual

What rights does Aira Fitness retain outside the Designated Area?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

e 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. 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).

Source: Item 23 — **RECEIPTS (FDD pages 59–254)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness and its affiliates retain the right to develop and operate Aira Fitness businesses outside a franchisee's designated area. This is regardless of the proximity to the franchisee's location or any potential negative impact on their business. Aira Fitness also reserves the right to develop and operate other exercise facilities or businesses under different trademarks, even if they are similar to or competitive with Aira Fitness businesses, both within and outside the designated area.

This means that while franchisees are granted a designated area, Aira Fitness maintains the freedom to expand and operate other locations or similar businesses outside of that area. This could potentially lead to increased competition for franchisees, as Aira Fitness could establish new locations nearby or introduce competing brands. Franchisees should be aware that their protected territory is limited to the designated area and that Aira Fitness's growth strategy may involve opening additional locations or businesses in adjacent areas.

Furthermore, Aira Fitness reserves all rights to use its system and marks in any manner and anywhere. This includes the right to offer, sell, or distribute items such as training videos, equipment, and athletic gear associated with the Aira Fitness system through any distribution channels without compensating the franchisee. Aira Fitness also has the right to provide and license third parties to provide ancillary programs at host locations such as apartments, corporate offices, and other gyms, both within and outside the franchisee's designated area, without compensation. This broad reservation of rights allows Aira Fitness to explore various revenue streams and partnerships without directly benefiting the franchisee.

Certain locations are considered "Special Sites" and are excluded from the Designated Area. Aira Fitness has the right to develop, license, or franchise Aira Fitness Businesses within these Special Sites, which include military bases, public transportation facilities, sports facilities, college campuses, hotels, apartment complexes, and corporate office buildings. This further limits the franchisee's protected territory and allows Aira Fitness to capitalize on opportunities in unique locations that may fall within or near a franchisee's designated area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.