Under what condition will Aira Fitness not develop or operate another Aira Fitness Business in the Designated Area?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
our Designated Area will remain constant throughout the initial term of this Agreement (unless you relocate the Aira Fitness Business and upon renewal or transfer). During the term of this Agreement and provided you are in compliance with the terms of this Agreement, neither we nor our affiliates will develop or operate, or grant to anyone else the right to develop or operate an Aira Fitness Business that is physically located in the Designated Area (other than at Special Sites, as described in Section 2.D). You acknowledge and agree that we and our affiliates have the right to develop and operate and grant others the right to develop and operate Aira Fitness Businesses outside the Designated Area, regardless of their proximity to the Designated Area or any negative impact they may have on your Aira Fitness Business. We and our affiliates also have the right to develop and operate and grant others the right to develop and operate exercise facilities and other businesses under a different trademark within and outside the Designated Area which may be similar to or competitive with Aira Fitness Businesses. We will not operate, franchise, or license the operation of an exercise facility offering 24/7 keycard access and substantially similar to an Aira Fitness Business in your Designated Area, except in connection with our acquisition of a multi-unit brand. If we acquire a multi-unit brand (through a stock purchase, asset purchase, merger, or otherwise), we or our affiliate may operate, franchise, or license the operation of the acquired brand within and outside the Designated Area, without offering any rights or compensation to you.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness and its affiliates will generally not develop, operate, or grant to others the right to develop or operate an Aira Fitness Business physically located within a franchisee's Designated Area during the term of the Franchise Agreement, provided the franchisee remains in compliance with the agreement's terms. This provides a level of territorial protection for the franchisee. However, this protection does not apply to "Special Sites".
Special Sites are locations that Aira Fitness considers unique and separate in character from typical Aira Fitness Business locations. These Special Sites are excluded from the Designated Area, meaning Aira Fitness retains the right to develop, license, or franchise Aira Fitness Businesses within them, even if they fall within a franchisee's Designated Area. These Special Sites include military bases, public transportation facilities (airports, railway stations, travel plazas), sports facilities (race tracks), student unions on college campuses, hotels/resorts, apartment/condominium complexes, and corporate office buildings or office parks.
Furthermore, Aira Fitness retains the right to develop and operate exercise facilities and other businesses under a different trademark, both within and outside the Designated Area, even if they are similar to or competitive with Aira Fitness Businesses. The only exception to this is that Aira Fitness will not operate, franchise, or license the operation of an exercise facility offering 24/7 keycard access and substantially similar to an Aira Fitness Business in the Designated Area, unless it acquires a multi-unit brand. If Aira Fitness acquires a multi-unit brand, it may operate, franchise, or license the operation of the acquired brand within and outside the Designated Area without offering any rights or compensation to the franchisee.