Is the execution of the guaranty a condition for the Aira Fitness franchisor's affiliate to enter into the equipment lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's |
|---|---|---|
| WITNESSETH | ||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. 200 Wheaton, IL 60189 Attn: Alissa Carter Verson | |
| (b) | Franchisee's Address for Notice: With a copy of all notices going to: (Franchisee): | |
| (c) | Concurrently with the execution of this Agreement a material inducement of Franchisor's Affiliate's obligations under this Agreement, , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the execution of a guaranty is a condition for the franchisor's affiliate to enter into the equipment lease agreement. Specifically, concurrently with the execution of the lease agreement, the franchisee (referred to as 'Guarantor') must execute and deliver a Guaranty to the Franchisor's Affiliate. This guaranty, in the form attached as Schedule 2, ensures the franchisee's full performance under the lease agreement.
This condition means that before Aira Fitness's affiliate, Pure Gym Equipment LLC, is obligated to lease the fitness equipment to the franchisee, a separate guaranty agreement must be in place. This guaranty provides the franchisor's affiliate with additional security, as it ensures that a third party (the Guarantor) is responsible for the franchisee's obligations under the lease.
For a prospective Aira Fitness franchisee, this implies that they, or another party, will need to sign a guaranty, promising to cover the franchisee's lease obligations if the franchisee fails to do so. This is a common practice in franchising, especially when dealing with equipment leases, as it mitigates the risk for the leasing company. The franchisee should carefully review Schedule 2, which contains the specific terms of the guaranty, to understand the full extent of the guarantor's obligations and liabilities.