Is the execution of the Aira Fitness Guaranty a condition of the Franchisor's Affiliate entering into the 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, guaranteein |
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 the Guaranty is a condition for the Franchisor's Affiliate to enter into the Lease Agreement. Specifically, the FDD states that the Guarantor, who is the Franchisee, must execute and deliver a Guaranty to the Franchisor's Affiliate as a condition of and concurrently with the execution of the Lease Agreement. This Guaranty is in the form attached as Schedule 2 and guarantees the Franchisee's full performance under the Lease Agreement.
In practical terms, this means that before the Franchisor's Affiliate will finalize the lease for the Aira Fitness location, a separate Guaranty document must be signed and delivered. This document ensures that another party (the Guarantor) is responsible for the financial and operational obligations of the franchisee under the lease. This is a common practice in franchising, especially when the franchisee is a newly formed entity or has limited operating history.
The requirement for a Guaranty adds a layer of security for the Franchisor's Affiliate, mitigating the risk of financial loss due to franchisee default. The Guaranty ensures that there is another party liable for the lease obligations, increasing the likelihood that the lease terms will be fulfilled. For a prospective Aira Fitness franchisee, this means identifying a suitable Guarantor who is willing to take on this responsibility. This could be a parent, spouse, or business partner with sufficient assets or financial stability.
It is important for potential Aira Fitness franchisees and their Guarantors to carefully review the terms of the Guaranty, understanding the full extent of the obligations and liabilities it creates. The Guaranty typically remains in effect for the duration of the lease, and the Guarantor may be held responsible for rent payments, property damage, and other lease-related expenses if the franchisee fails to meet their obligations. However, the document also states that the Guarantor shall be released from liability thirty-six (36) months from the date of the Lease, on condition that Franchisee has fully complied with its obligations under this Lease during said 36 months.