What is the document described in Exhibit C to the Multi-Unit Development Agreement for Aira Fitness?
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, Exhibit C to the Multi-Unit Development Agreement is the Owner Guaranty. This agreement requires all owners of the Developer to personally guarantee and assume the obligations outlined in the Multi-Unit Development Agreement.
This means that the franchisor, Aira Fitness, requires a personal commitment from the owners of the entity entering into the agreement. By signing the Guaranty and Assumption of Obligations, the owners become personally liable for the entity's performance under the agreement. This is a common practice in franchising, especially with multi-unit developments, as it provides the franchisor with an additional layer of security and assurance that the franchisee will fulfill their obligations.
For a prospective Aira Fitness franchisee, this requirement means that their personal assets could be at risk if the business fails to meet its obligations under the Multi-Unit Development Agreement. It is crucial for potential franchisees to fully understand the terms of the agreement and the implications of the Owner Guaranty before signing. They should seek legal counsel to assess the risks and ensure they are comfortable with the personal liability they are undertaking.