What is the condition for Franchisee's obligations under the lease agreement for the Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's |
|---|---|---|
| WITNESSETH | ||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. 200 Wheaton, IL 60189 Attn: Alissa Carter Verson | |
| (b) | Franchisee's Address for Notice: With a copy of all notices going to: (Franchisee): | |
| (c) | Concurrently with the execution of this Agreement a material inducement of Franchisor's Affiliate's obligations under this Agreement, , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a condition of the franchisee's obligations under the lease agreement is the execution and delivery of a Guaranty by the Franchisee to Franchisor's Affiliate. This Guaranty, in the form attached as Schedule 2, guarantees the franchisee's full performance under the lease agreement. This means that a separate individual or entity (the Guarantor) is promising to fulfill the franchisee's obligations if the franchisee fails to do so.
This requirement of a Guaranty has significant implications for prospective Aira Fitness franchisees. It means that the franchisee will need to find someone willing to personally guarantee the lease, adding another layer of responsibility. This could be a spouse, family member, or business partner. The guarantor's creditworthiness and financial stability will likely be scrutinized, as they are essentially vouching for the franchisee's ability to meet the lease obligations.
The inclusion of a personal guarantee is a common practice in franchising, especially for new franchisees or those with limited operating history. It reduces the landlord's risk by providing an additional party to pursue in case of default. However, prospective franchisees should carefully consider the implications of a personal guarantee and ensure that the guarantor fully understands the extent of their liability.
It is important for potential Aira Fitness franchisees to review Schedule 2, which contains the specific terms of the Guaranty, to fully understand the guarantor's obligations and potential liabilities. Franchisees should also consult with legal and financial advisors to assess the risks and benefits of entering into a lease agreement with a personal guarantee.