Can the Franchisor's Affiliate add, substitute, or release guarantors for the Aira Fitness Lease without notice?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's Affiliate may, from time to time, and without notice to Guarantor, release any security that Franchisor's Affiliate may have for the obligations of Franchisee under the Lease or accept security therefor; add, substitute or release guarantors; or compromise or settle any amount due or owing; or claimed to be owing under the Lease; and no such action by Franchisor's Affiliate or any other action which Franchisor's Affiliate may take or omit in connection with the Lease shall affect this Guaranty or Guarantor's obligations in any way.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Franchisor's Affiliate has the right to add, substitute, or release guarantors related to the lease without providing notice to the guarantor. This means that as a franchisee, you may not be informed if the individuals or entities guaranteeing the lease change or are released from their obligations.
This clause protects the Franchisor's Affiliate by allowing them flexibility in managing the lease guarantees without needing to seek approval or even inform the original guarantor. However, this could be a disadvantage for the guarantor, as they may remain liable under the guaranty even if the security or other guarantors change. The guarantor is expected to stay informed about the franchisee's financial condition and lease performance, as the Franchisor's Affiliate has no obligation to disclose such information.
It is important for a prospective Aira Fitness franchisee and any potential guarantors to fully understand the implications of this clause. The guarantor's obligations remain in effect regardless of any actions taken by the Franchisor's Affiliate concerning the lease, including modifications, assignments, or subletting of the premises. The guarantor also waives the right to receive notice of acceptance of the guaranty and any diligence in collecting sums due under the lease.