Who must execute the form of undertaking and guarantee for an Aira Fitness franchise if the franchisee is a corporation?

According to Aira Fitness's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, partnership, or other legal entity, all Owners of the franchisee must execute the form of undertaking and guarantee at the end of the Franchise Agreement. Additionally, any person or entity that becomes an Owner after the agreement date, as per Section 11 or otherwise, must also execute this guarantee. In the event that no individual meets the definition of Owner, Aira Fitness will designate the owners who must provide the guarantee.

This requirement ensures that Aira Fitness has recourse to the personal assets of the individuals who control the franchisee entity. This is a common practice in franchising, as it mitigates the risk to the franchisor associated with franchisees operating under the protection of a corporate structure. The personal guarantee essentially makes the owners personally liable for the franchisee's obligations under the Franchise Agreement.

For a prospective Aira Fitness franchisee, this means that if you operate your franchise through a corporation or other legal entity, you and all other owners will be required to sign a personal guarantee. This is a significant commitment, as it puts your personal assets at risk if the franchise fails to meet its financial or contractual obligations. It is important to carefully consider the implications of this personal guarantee before entering into a franchise agreement with Aira Fitness.