What document must Aira Fitness Developer Owners execute concurrently with the execution of the Aira Fitness Agreement to fulfill the personal guarantee requirement?
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 provide a personal guarantee. To fulfill this requirement, each Owner must execute the 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 executes the Aira Fitness Agreement.
This personal guarantee means that the Owners are personally liable for the obligations of the Developer under the Aira Fitness Agreement. If the Developer fails to meet its financial or other obligations, Aira Fitness can pursue the Owners directly for fulfillment. This is a standard practice in franchising, as it provides the franchisor with additional security and recourse.
Prospective Aira Fitness franchisees should carefully review Exhibit C and understand the full extent of their personal obligations before signing the Multi-Unit Development Agreement. They should also seek legal counsel to fully understand the implications of providing a personal guarantee.