What document is the Aira Fitness Guaranty related to?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If the proposed transfer (or a series of transfers) would result in a change in control of the franchisee, the transferee must execute our then-current form of franchise agreement (provided that no initial franchise fee will be due there under); and each of transferee's owners execute our thencurrent form of personal guaranty and undertaking.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the guaranty is related to the franchise agreement. Specifically, if a transfer of the franchise would result in a change of control, the transferee's owners must execute Aira Fitness's then-current form of personal guaranty and undertaking.
This means that if the individual or entity acquiring the Aira Fitness franchise represents a significant change in ownership or control, Aira Fitness requires the owners of the new entity to personally guarantee the obligations under the franchise agreement. This is a common practice in franchising, as it ensures that individuals with a vested interest in the business are personally liable for its performance and adherence to the franchise agreement terms.
For a prospective Aira Fitness franchisee, this implies that if they plan to transfer their franchise in the future, particularly in a way that alters the controlling interest, the new owners will need to provide a personal guaranty. This requirement adds a layer of security for Aira Fitness, ensuring commitment from the new ownership and potentially mitigating risks associated with the transfer.