Is the territory granted to an Aira Fitness franchisee exclusive?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
and geographic boundaries.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We are not required to pay you if we exercise any reserved rights within your Designated Area. However, as long as you are in compliance with the Franchise Agreement and meet the minimum membership requirements described below, we will not establish an Aira Fitness Business, nor license or franchise another party the right to establish an Aira Fitness Business within your Designated Area (except Special Sites, as defined below).
We and our affiliates also have the right to develop and operate, and grant others the right to develop and operate, businesses offering fitness services and other businesses under a different trademark within and outside the Designated Area, which may be similar to or competitive with Aira Fitness Businesses.
Certain locations are by their natureuniqueand separate in character from sites generally developed asAira Fitness Businesses ("Special Sites"). These Special Sites are excluded from the Designated Area and we have the right to develop, license or franchise Aira Fitness Businesses at these locations within or outside your Designated Area: (1) military bases; (2) public transportation facilities, including, without limitation, airports,railway stations,limited access highwaytravelplazas andothertransportation terminals; (3) sports facilities, including race tracks; (4) student unions or other similar buildings on college or university campuses; (5) hotels, resorts or similar short-term lodging; (6) apartment or condominiumcomplex; and (7) corporate office buildings or office parks.
We reserve to ourselvesallotherrightsto use the SystemandMarks anywhere and in anymannerincluding, 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). For instance, we currently offer online member enrollment through www.airafitness.com and Groupon.
There are no restrictions on our rights to solicit or accept orders inside or outside of your Designated Area. We are not required to compensate you for soliciting or accepting orders in the Designated Area.
Continuation of your Designated Area is dependent on achieving certain sales volumes or market penetration.
Minimum Membership Requirement
Beginning on the one-year anniversary of opening for business, you must, at all times, have at least 150 members ("Minimum Membership Requirement"). If, during your second year of operation and thereafter, you do notmaintainthe Minimum MembershipRequirementfor 2 consecutivemonths, we may: (1) require your Principal and General Managers we determine to attend additional training programs; or (2) provide on-site assistance and consultation at your expense. If we provide any additional training, assistance or consultation, you must cover all costs and expensesfor such training, assistance or consultation. If, during your second year of operation and thereafter, you do not maintain the Minimum Membership Requirement for 6 consecutive months, we may eliminate your territorial protection or terminate the Franchise Agreement.
Minimum Monthly Gross Sales Requirement
Beginning on the one-year anniversary of opening for business, you must maintain Gross Sales of at least $10,000 per month ("Minimum Monthly Gross Sales Requirement"). If, during your second year of operation and thereafter, you do not maintain the Minimum Monthly Gross Sales Requirement for 2 consecutive months, we may: (1) require your Principal and General Managers we determine to attend additional training programs; or (2) provide on-site assistance and consultation at your expense. If we provide any additional training, assistance or consultation, you must cover all costs and expenses for such training, assistance or consultation. If, during your second year of operation and thereafter, you do not maintain the Minimum MonthlyGross SalesRequirementfor 6 consecutivemonths,we may eliminateyour territorial protection or terminate the Franchise Agreement.
Source: Item 12 — **TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Aira Fitness will not establish or franchise another Aira Fitness Business within a franchisee's Designated Area as long as the franchisee complies with the Franchise Agreement and meets the minimum membership requirements, franchisees may face competition from other franchisees, outlets that Aira Fitness owns, other distribution channels, or competitive brands that Aira Fitness controls.
The Designated Area is determined after the franchisee acquires a site and is typically a radius of 1 to 3 miles from the Authorized Location. The specific size and boundaries are defined by factors such as zip codes, natural and man-made boundaries, political boundaries, traffic patterns, cultural demographics, household income, population growth, and the density of residential and business entities. Aira Fitness retains the sole discretion in determining the relevance of these factors.
Aira Fitness and its affiliates reserve the right to operate businesses offering fitness services under different trademarks, even if they compete with Aira Fitness businesses, both within and outside the Designated Area. Additionally, Aira Fitness can develop, license, or franchise Aira Fitness businesses at "Special Sites" such as military bases, transportation facilities, sports facilities, college campuses, hotels, apartment complexes, and corporate office buildings, regardless of their location within or outside a franchisee's Designated Area. Aira Fitness also retains the right to use the System and Marks in any manner, including offering and selling items through any distribution channels without compensating the franchisee.
Furthermore, the continuation of the Designated Area depends on meeting certain sales volumes or market penetration, specifically maintaining at least 150 members and $10,000 in monthly gross sales after the first year of operation. Failure to meet these requirements for six consecutive months may result in the elimination of territorial protection or termination of the Franchise Agreement. These factors highlight the importance of location and business performance for Aira Fitness franchisees.