Is the execution of the Aira Fitness Guaranty a material inducement to 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, 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 by the franchisee is a material inducement for the Franchisor's Affiliate to enter into the Lease Agreement. Specifically, the franchisee (referred to as "You") must provide a Guaranty to the Franchisor's Affiliate as a condition of and concurrently with the execution of the Lease Agreement. This Guaranty ensures the franchisee's full performance under the Lease Agreement.
This requirement means that a third party, the Guarantor, commits to covering the franchisee's obligations under the lease. This arrangement provides the Franchisor's Affiliate (Pure Gym Equipment LLC) with added financial security, ensuring lease payments and other responsibilities are fulfilled. The Guaranty is attached as Schedule 2 to the Lease Agreement, indicating a standardized form.
For a prospective Aira Fitness franchisee, this implies that they will need to find a suitable Guarantor who is willing to guarantee their obligations under the lease. This could be a family member, business partner, or another entity with sufficient financial standing. The Guarantor's financial health and willingness to sign the Guaranty are critical, as the Franchisor's Affiliate relies on this Guaranty as a key factor in entering the lease agreement. Failing to provide an acceptable Guaranty could prevent the franchisee from securing the necessary lease and, consequently, from operating an Aira Fitness franchise.