After termination, is an Aira Fitness franchisee allowed to employ or solicit employees of Aira Fitness or other franchisees?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.2 Developer specifically acknowledges that, pursuant to this Agreement, Developer will have access to the Confidential Information. Accordingly, Developer covenants that Developer and its Owners shall not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, or entity:
- (c) employ or seek to employ any person employed by us or our affiliate or by any other Aira Fitness Center franchisee, or otherwise directly or indirectly induce or seek to induce such person to leave his or her employment;
The ownership of two percent (2%) or less of a publicly traded Franchisor will not be deemed to be prohibited by this paragraph.
- 9.3 Court Modification of Agreement**.** You agree that this form of Agreement is prepared for use in many jurisdictions with differing public policies and that such public policies change. Accordingly, you agree that the prevailing non-competition restrictions set forth above may be modified by a Court to the extent necessary to make the non-competition agreements valid and enforceable against you.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, a franchisee is restricted from employing or soliciting employees of Aira Fitness or its other franchisees. Specifically, for a period of two years after the agreement's termination, the franchisee cannot directly or indirectly employ, seek to employ, or induce anyone to leave their employment with Aira Fitness, its affiliates, or any other Aira Fitness Center franchisee. This restriction applies regardless of the reason for termination.
This post-termination covenant aims to protect Aira Fitness's business interests by preventing franchisees from poaching valuable employees who have been trained and have gained experience within the Aira Fitness system. It also prevents the unfair competitive advantage that a former franchisee might gain by hiring staff familiar with Aira Fitness's operational methods and confidential information. The term "Developer" includes each and every Owner of Developer.
The FDD specifies that this restriction is in place to protect Aira Fitness and its system. However, the document also includes a clause that allows a court to modify the non-competition restrictions if necessary to ensure they are valid and enforceable, acknowledging that public policies vary across jurisdictions. This suggests that the enforceability of this provision may depend on local laws and judicial interpretation.
Prospective franchisees should be aware of this restriction and factor it into their business plans, especially if they anticipate wanting to hire experienced staff from within the Aira Fitness network after their franchise agreement ends. It is advisable to seek legal counsel to understand the specific implications and enforceability of this clause in their jurisdiction.