During the term of the Aira Fitness agreement, can a Covered Person have an interest in another exercise facility?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise specified, the term "Covered Person" as used in this Section 10.D includes, collectively and individually, your Owners and all guarantors, officers, directors, members, managers, partners, as the case may be, and holders of any ownership interest in you.
We may require you to obtain from your individuals identified in the preceding sentence a signed non-compete agreement in a form satisfactory to us that contains the non-compete provisions of this Section 11.D.
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, during the term of the agreement, a Covered Person is restricted from having an interest in another exercise facility. The term "Covered Person" includes owners, guarantors, officers, directors, members, managers, partners, and holders of any ownership interest in the franchisee. Aira Fitness may also require these individuals to sign a non-compete agreement.
Specifically, Covered Persons are prohibited from owning, operating, leasing, franchising, engaging in, being connected with, having any interest in, or assisting any person or entity engaged in any other exercise facility. This includes various types of facilities such as 24/7 fitness centers, studios, or facilities featuring keycard access or structured fitness programs. The only exception is another Aira Fitness Business operating under a valid franchise agreement with them.
This restriction is in place to protect Aira Fitness's business interests and prevent franchisees from using the training and confidential information they receive to compete with the franchise system. The FDD states that these non-competition covenants are considered reasonable and necessary to protect Aira Fitness and its franchisees.
After the termination or expiration of the franchise agreement, these restrictions continue for a period of two years. During this post-term period, Covered Persons are restricted from involvement with other exercise facilities within a 10-mile radius of the former Aira Fitness location, any other Aira Fitness Business in operation or under construction, or within the Designated Area of any other Aira Fitness franchisee.