What form must Owners of a franchisee that is a corporation, limited liability company or partnership execute for Aira Fitness?

According to the 2025 Aira Fitness Franchise Disclosure Document, all owners of a franchisee that is a corporation, limited liability company, partnership, or other legal entity 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 date of the agreement, must also execute the form of undertaking and guarantee. If no individual meets the definition of Owner, all owners that Aira Fitness designates must provide the guarantee.

This requirement ensures that Aira Fitness has a personal guarantee from the individuals who ultimately control the franchisee entity. This is a common practice in franchising, as it provides the franchisor with recourse against individuals rather than just the business entity, which may have limited assets. The personal guarantee holds the owners accountable for the franchisee's performance and adherence to the Franchise Agreement.

The "form of undertaking and guarantee" likely includes provisions where the owner agrees to be personally liable for the franchisee's obligations under the Franchise Agreement. This may include financial obligations, such as royalty payments, and also obligations to comply with the Aira Fitness system standards. Prospective franchisees should carefully review the form of undertaking and guarantee with their legal counsel to understand the full extent of their personal liability.