During the term of the Aira Fitness franchise, what activities are considered non-competition violations?
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 amendment specifically refers to Section 11.D.3 of the Franchise Agreement, which addresses "Non-Compete Covenants – After Termination." This suggests that any attempts by Aira Fitness to enforce non-compete agreements against franchisees in North Dakota after the termination of their franchise agreement may not be legally valid.
This addendum to the Aira Fitness franchise agreement provides important information for prospective franchisees in North Dakota. It indicates that the typical restrictions that prevent a franchisee from engaging in competitive activities after leaving the franchise system may not apply in this state. This could offer greater flexibility for former Aira Fitness franchisees in North Dakota who wish to continue operating a similar business or join a competing company after their franchise agreement ends.
It is important to note that this addendum specifically addresses the enforceability of non-compete covenants after termination. The FDD excerpts do not specify whether non-competition is restricted during the term of the agreement. A prospective franchisee should seek clarification from Aira Fitness regarding any non-compete obligations or restrictions that may apply while the franchise agreement is still in effect.