Does assignment of the Aira Fitness Lease release the Guarantor from their obligations?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
be paid in full.
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- Reports. You must have provided all required reports to us in accordance with Section 10.
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- Modernization. You must have complied with the provisions of Section 5.F.
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- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
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Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the FDD does not explicitly state whether the assignment of the lease releases the guarantor from their obligations. However, it does state conditions regarding transfer of the franchise agreement.
Specifically, the FDD mentions that in the case of an installment sale where the owner retains a security interest, the guarantors are obligated to guarantee performance under the agreement until the final close of the installment sale or termination of such interest. Additionally, the FDD states that the transfer documents will include a general release to be executed by the owner and each guarantor.
Because the FDD does not directly address the release of a guarantor upon lease assignment, it is important for a prospective franchisee to seek clarification from Aira Fitness regarding the specific conditions under which a guarantor would be released from their obligations. This would involve understanding the interplay between the lease agreement, the franchise agreement, and any related guarantees.