Who is considered the 'Developer' in the Guaranty agreement with Aira Fitness?
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: |
|---|
| 1. |
| Guaranty. |
| Guarantor(s) hereby unconditionally and absolutely warrants and |
| guarantees to Franchisor that ("Developer") shall punctually pay and perform in full |
| each and every undertaking, agreement and covenant set forth in the Franchise Agreement; |
| 2. |
| Obligations of Guarantor Upon Event of Default. Should a Default (as defined in |
| the Franchise Agreement) occur, Guarantor(s) shall diligently proceed to cure such Default at |
| Guarantor's sole cost and expense; |
| 3. |
| Nature of Guaranty. |
| This Guaranty is an original and independent obligation of |
| Guarantor(s), separate and distinct from Developer's obligations to Franchisor under the Multi-Unit |
| Development |
| Agreement. The obligations of Guarantor to Franchisor under this Guaranty are direct |
| and primary, regardless of the validity or enforceability of the Franchise Agreement. This Guaranty is |
| for the benefit of Franchisor and is not for the benefit of any third party. This Guaranty shall continue |
| until all obligations of Guarantor to Franchisor under this Guaranty have been performed in full. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Guaranty agreement specifies that the 'Developer' is the entity that is required to punctually pay and perform all obligations outlined in the Franchise Agreement. The Guaranty is made in consideration of the execution of the Franchise Agreement by Aira Fitness Franchising LLC, the Franchisor.
Specifically, the Guarantor(s) warrants and guarantees that the Developer will fulfill each undertaking, agreement, and covenant set forth in the Franchise Agreement. In the event of a default by the Developer, the Guarantor(s) is obligated to cure such default at their own cost. This obligation is separate and distinct from the Developer's obligations to Aira Fitness under the Multi-Unit Development Agreement.
This arrangement ensures that Aira Fitness has a direct and primary claim against the Guarantor, regardless of the validity or enforceability of the Franchise Agreement itself. The Guaranty remains in effect until all obligations of the Guarantor to Aira Fitness have been fully performed. This provides Aira Fitness with an additional layer of security and recourse in case the Developer fails to meet its contractual obligations.