For the Aira Fitness franchise agreement receipt, what ownership percentage in the franchisee must be provided for each personal guarantor?

Based on the 2025 Aira Fitness Franchise Disclosure Document, all owners of a franchisee entity (corporation, LLC, partnership, etc.) must execute a form of undertaking and guarantee. This requirement extends to anyone who becomes an owner after the franchise agreement's date. If no individual meets the definition of 'Owner', Aira Fitness will designate which owners must provide the guarantee.

This means that if your Aira Fitness franchise is owned by a company, every individual who owns a stake in that company must personally guarantee the franchise agreement. This ensures that Aira Fitness has recourse to the personal assets of all owners, not just the business assets, if the franchise fails to meet its obligations. The FDD does not specify a minimum ownership percentage that triggers this guarantee; it simply states that all owners must provide it.

For a prospective franchisee, this requirement has significant implications. Before signing the franchise agreement, you should fully understand the personal financial risks involved, as you will be held personally liable for the franchise's debts and obligations. If you plan to bring in partners or investors, make sure they are also aware of this requirement, as it could affect their willingness to invest. You should consult with a legal and financial advisor to fully understand the implications of providing a personal guarantee.

This requirement is fairly standard in the franchise industry, as franchisors want to ensure that franchisees are fully committed to the success of the business and have a personal stake in its performance. However, the specific terms of the guarantee can vary from franchise to franchise, so it is important to carefully review the franchise agreement and related documents before signing.