Who benefits from the provisions, covenants, and conditions of the Aira Fitness personal guarantee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Attachment C to the Franchise Agreement
PERSONAL GUARANTEE AND AGREEMENT TO BE BOUND PERSONALLY BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT
In consideration of the execution of the Franchise Agreement by us, and for other good and valuable consideration, the undersigned, for themselves, their heirs, successors, and assigns, do jointly, individually and severally hereby become surety and guarantor for the payment of all amounts and the performance of the covenants, terms and conditions in the Franchise Agreement, to be paid, kept and performed by the franchisee, including without limitation the arbitration and other dispute resolution provisions of the Agreement.
Further, the undersigned, individually and jointly, hereby agree to be personally bound by each and every condition and term contained in the Franchise Agreement, including but not limited to the non-compete provisions in paragraph 11.D, the dispute resolution provision in Section 13, and agree that this Personal Guarantee will be construed as though the undersigned and each of them executed a Franchise Agreement containing the identical terms and conditions of this Franchise Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the personal guarantee ensures that the franchisor, Aira Fitness Franchising LLC, benefits from the franchisee's adherence to the Franchise Agreement. Specifically, the personal guarantee ensures that Aira Fitness receives all payments and benefits from the franchisee's performance of all covenants, terms, and conditions outlined in the Franchise Agreement. This includes, without limitation, the arbitration and other dispute resolution provisions of the Agreement. The personal guarantee extends to the undersigned, their heirs, successors, and assigns, jointly, individually, and severally.
In practical terms, this means that if the franchisee is a corporate entity, the individuals signing the personal guarantee (typically the owners) are personally liable for the financial and operational obligations of the franchise. This includes, but is not limited to, the non-compete provisions, dispute resolution processes, and all other terms outlined in the Franchise Agreement. The agreement specifies that the personal guarantee will be interpreted as if the individuals who signed it had personally executed the Franchise Agreement, binding them to the same terms and conditions as the franchisee entity.
This arrangement is common in franchising, as it provides Aira Fitness with an additional layer of security. By having individuals personally guarantee the franchisee's obligations, Aira Fitness can pursue those individuals' assets if the franchisee fails to meet its obligations. This reduces the risk for Aira Fitness and ensures that there are parties with a direct stake in the success and compliance of the Aira Fitness Business. The consent also allows Aira Fitness to obtain information from third-party providers, such as landlords and lenders, regarding any Aira Fitness Business owned or guaranteed by the owners.