What conditions will not diminish a personal guarantor's liability under the Aira Fitness Franchise Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF DEVELOPER'S OBLIGATIONS ("Guaranty") is made as of, 20, in consideration of, and as an inducement to, the execution of the Franchise Agreement by Aira Fitness Franchising LLC, an Illinois limited liability company ("Franchisor"). In consideration thereof, each of the undersigned hereby jointly and severally, personally and unconditionally agrees as follows: |
|---|
| 4. |
| Guarantor's Authorization to Franchisor. |
| Guarantor(s) authorizes Franchisor, |
| without notice or demand and without lessening Guarantor's liability under this Guaranty, from time |
| to time: (a) to make or approve changes to the Franchise Agreement; (b) to repeatedly compromise, |
| renew, extend, accelerate, or otherwise change the time for payment or other terms of the Franchise |
| Agreement; (c) to take and hold security for the payment of amounts due under the Franchise |
| Agreement or this Guaranty, and exchange, enforce, waive, and release any such security, with or |
| without the substitution of new collateral; (d) to determine how, when, and what application of |
| payments and credits shall be made on amounts due under the Franchise Agreement; and (j) to assign |
| or transfer this Guaranty, in whole or in part. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, several actions by Aira Fitness do not reduce the personal guarantor's obligations. Specifically, Aira Fitness can make or approve changes to the Franchise Agreement, repeatedly compromise, renew, extend, accelerate, or otherwise change the time for payment or other terms of the Franchise Agreement without affecting the guarantor's liability. Additionally, Aira Fitness can take and hold security for the payment of amounts due under the Franchise Agreement or the Guaranty, and exchange, enforce, waive, and release any such security, with or without the substitution of new collateral. Aira Fitness also has the right to determine how, when, and what application of payments and credits shall be made on amounts due under the Franchise Agreement, and to assign or transfer the Guaranty, in whole or in part, without diminishing the guarantor's liability.
This means that as a potential Aira Fitness franchisee, if you have a personal guarantor, that guarantor remains fully responsible for the franchisee's obligations even if Aira Fitness modifies the franchise agreement, extends payment deadlines, or handles security and payments in various ways. The guarantor's obligations are direct and primary, irrespective of the validity or enforceability of the Franchise Agreement itself. This protects Aira Fitness by ensuring that the guarantor remains liable even if the terms of the agreement change or if the franchisee faces financial difficulties.
This type of clause is common in franchising, as it provides the franchisor with added security. However, it places a significant responsibility on the guarantor, who should be fully aware of the extent of their obligations and the potential risks involved. A prospective franchisee should ensure that any personal guarantor understands these terms and has carefully considered the implications before signing the guarantee. It is advisable for the guarantor to seek independent legal advice to fully understand their obligations under the Guaranty.