During the term of the Aira Fitness franchise, what actions are prohibited regarding competition?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 11.D.3. of the Franchise Agreement on "Non-Compete Covenants – After Termination" is amended by the addition of the following language to the original language that appears therein:
"Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota."
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document addendum for North Dakota, covenants not to compete are generally unenforceable in the State of North Dakota.
This means that Aira Fitness franchisees in North Dakota may have more freedom to engage in competitive activities during the term of their franchise agreement and after termination, compared to franchisees in other states where non-compete clauses are strictly enforced. This could be seen as a benefit for franchisees in North Dakota, as it allows them more flexibility in their business ventures.
However, prospective Aira Fitness franchisees should consult with a legal professional to fully understand the implications of this addendum and how it may affect their rights and obligations under the franchise agreement. It's important to note that while non-compete agreements may be generally unenforceable, there may be specific circumstances or activities that could still be restricted.