For an Aira Fitness franchisee, what action must the Guarantor take if the franchisee fails to make a payment under the Lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ise Agreement Franchisor Approved Site of Operations Upon the execution of this Agreement DEVELOPER: AIRA FITNESS [ENTITY NAME] FRANCHISING LLC An Illinois limited liability Franchisor A Dated: Dated: AIRA FITNESS MUDA 2025 - 18 - DEVELOPER INITIALS FRANCHISOR INITIALS
EXHIBIT C TO THE MULTI-UNIT DEVELOPMENT AGREEMENT
| THIS GUARANTY AND ASSUMPTION OF DEVELOPER'S OBLIGATIONS ("Guaranty") is made as of, 20, in consideration of, and as an inducement to, the execution of the Franchise Agreement by Aira Fitness Franchising LLC, an Illinois limited liability company ("Franchisor"). In consideration thereof, each of the undersigned hereby jointly and severally, personally and unconditionally agrees as follows: |
|---|
| 1. |
| Guaranty. |
| Guarantor(s) hereby unconditionally and absolutely warrants and |
| guarantees to Franchisor that ("Developer") shall punctually pay and perform in full |
| each and every undertaking, agreement and covenant set forth in the Franchise Agreement; |
| 2. |
| Obligations of Guarantor Upon Event of Default. Should a Default (as defined in |
| the Franchise Agreement) occur, Guarantor(s) shall diligently proceed to cure such Default at |
| Guarantor's sole cost and expense; |
| 3. |
| Nature of Guaranty. |
| This Guaranty is an original and independent obligation of |
| Guarantor(s), separate and distinct from Developer's obligations to Franchisor under the Multi-Unit |
| Development |
| Agreement. The obligations of Guarantor to Franchisor under this Guaranty are direct |
| and primary, regardless of the validity or enforceability of the Franchise Agreement. This Guaranty is |
| for the benefit of Franchisor and is not for the benefit of any third party. This Guaranty shall continue |
| until all obligations of Guarantor to Franchisor under this Guaranty have been performed in full. |
| 4. |
| Guarantor's Authorization to Franchisor. |
| Guarantor(s) authorizes Franchisor, |
| without notice or demand and without lessening Guarantor's liability under this Guaranty, from time |
| to time: (a) to make or approve changes to the Franchise Agreement; (b) to repeatedly compromise, |
| renew, extend, accelerate, or otherwise change the time for payment or other terms of the Franchise |
| Agreement; (c) to take and hold security for the payment of amounts due under the Franchise |
| Agreement or this Guaranty, and exchange, enforce, waive, and release any such security, with or |
| without the substitution of new collateral; (d) to determine how, when, and what application of |
| payments and credits shall be made on amounts due under the Franchise Agreement; and (j) to assign |
| or transfer this Guaranty, in whole or in part. |
| 5. |
| Guarantor's Representations and Warranties. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee defaults on their obligations, the Guarantor is required to take specific actions. The Guarantor must diligently proceed to cure such default at the Guarantor's sole cost and expense. This obligation is part of the Guaranty, which is an unconditional and absolute warrant to Aira Fitness Franchising LLC that the Developer will punctually pay and perform in full each undertaking, agreement, and covenant set forth in the Franchise Agreement.
This Guaranty is considered an original and independent obligation, separate from the franchisee's obligations. The Guarantor's obligations are direct and primary, irrespective of the validity or enforceability of the Franchise Agreement. The Guaranty benefits Aira Fitness and remains in effect until all obligations of the Guarantor are fully performed.
The Guarantor also authorizes Aira Fitness to make changes to the Franchise Agreement, compromise, renew, extend, or otherwise change the payment terms without notice or demand and without lessening the Guarantor's liability. Aira Fitness can also take and hold security for payment, determine how payments are applied, and assign or transfer the Guaranty. The Guarantor represents and warrants that no other agreements were made.
In practical terms, this means that if an Aira Fitness franchisee fails to meet their financial obligations under the Franchise Agreement, the Guarantor is legally bound to step in and cover those costs. This arrangement provides Aira Fitness with an additional layer of financial security, ensuring that debts are paid even if the franchisee's business struggles. Prospective franchisees should carefully consider the implications of having a guarantor, as it places significant financial responsibility on that individual or entity.