What must the Aira Fitness developer sign simultaneously with the development agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement must be personally guaranteed and the obligations hereunder assumed by all of the Owners of the Developer, and all such Owners must execute the Guaranty and Assumption of Obligations which is attached hereto as Exhibit C concurrently with the execution of this Agreement by Developer.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, all owners of the Developer must personally guarantee the Development Agreement and assume the obligations outlined within it. To formalize this, each owner is required to execute a Guaranty and Assumption of Obligations, which is included as Exhibit C to the Multi-Unit Development Agreement. This document must be signed at the same time the Developer signs the Development Agreement.
This requirement ensures that Aira Fitness has recourse to the personal assets of the Developer's owners should the Developer fail to meet its obligations under the agreement. By having each owner personally guarantee the agreement, Aira Fitness aims to increase the commitment and accountability of the Developer.
For a prospective Aira Fitness franchisee, this means that if you are part of a multi-person ownership structure, you and your partners will each need to sign a personal guarantee. This is a standard practice in franchising, as it provides the franchisor with an additional layer of security and demonstrates the owners' confidence in the business venture.