Can Aira Fitness's Franchisor require the Guarantor to specifically perform their obligations under the Guaranty without first requiring performance from the Developer?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Specific Performance.
From time to time and without first requiring performance on the part of Developer and without being required to exhaust any security held by Franchisor, to require Guarantor specifically to perform Guarantor's obligations under this Guaranty, by action at law or in equity or both, and further, to collect in any such action, compensation for all loss, cost, damage, injury and expense sustained or incurred by Franchisor as a direct or indirect consequence of Guarantor's failure to perform, with interest thereon at the lesser of the rate of 1.5% per month or the highest rate of interest allowable under applicable law.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchisor has the right to demand specific performance from the guarantor without needing to first seek performance from the developer. This means Aira Fitness Franchising, LLC can directly pursue the guarantor to fulfill their obligations under the Guaranty agreement without initially requiring the developer to act. This condition is part of the rights and remedies outlined in the Guaranty.
This provision protects Aira Fitness by allowing them to immediately seek recourse from the guarantor if the developer fails to meet their obligations. It streamlines the process for Aira Fitness to ensure compliance with the franchise agreement. The guarantor can be compelled to perform their obligations through legal action, and Aira Fitness is entitled to collect compensation for any losses or expenses incurred due to the guarantor's failure to perform, including interest calculated at the lesser of 1.5% per month or the highest rate permitted by law.
For a prospective Aira Fitness franchisee, this highlights the importance of understanding the Guaranty agreement and the potential liabilities it creates. If a franchisee is asked to act as a guarantor, they should be fully aware that Aira Fitness can pursue them directly for the developer's obligations without first trying to resolve the issue with the developer. This clause is designed to provide Aira Fitness with a direct and efficient means of enforcing the franchise agreement and protecting their interests.
It is important for potential franchisees and guarantors to seek legal counsel to fully understand the implications of the Guaranty and their obligations under it. This ensures they are aware of the potential financial and legal risks involved in guaranteeing the performance of the developer under the Aira Fitness franchise agreement.