Who is considered the 'Developer' in the context of the Aira Fitness Guaranty?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e Agreement Franchisor Approved Site of Operations Upon the execution of this Agreement DEVELOPER: AIRA FITNESS [ENTITY NAME] FRANCHISING LLC An Illinois limited liability Franchisor A Dated: Dated: AIRA FITNESS MUDA 2025 - 18 - DEVELOPER INITIALS FRANCHISOR INITIALS
EXHIBIT C TO THE MULTI-UNIT DEVELOPMENT AGREEMENT
| 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").
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the 'Developer' in the context of the Guaranty refers to the entity that is undertaking the obligations outlined in the Franchise Agreement. Specifically, the Guaranty ensures that the Developer will punctually pay and perform all agreements and covenants set forth in the Franchise Agreement. The owners of the Developer are required to personally guarantee these obligations by executing a Guaranty and Assumption of Obligations.
This means that if a franchisee is operating under a corporate entity, the owners of that entity must personally guarantee the Aira Fitness franchise agreement. This is a common practice in franchising, as it provides the franchisor with additional security that the obligations under the agreement will be met. The personal guaranty makes the owners individually liable for the performance of the franchise, even if the business entity fails.
The Guaranty is an independent obligation of the Guarantor(s), separate from the Developer's obligations. This means that the Guarantor's obligations are direct and primary, regardless of the validity or enforceability of the Franchise Agreement. The Guarantor also authorizes Aira Fitness to make changes to the Franchise Agreement without lessening the Guarantor's liability. Prospective franchisees should carefully review the Guaranty and Assumption of Obligations to fully understand the scope of their personal liability.