Can the Franchisor's Affiliate release security for the Aira Fitness Franchisee's obligations without notifying the Guarantor?

According to Aira Fitness's 2025 Franchise Disclosure Document, the Franchisor's Affiliate has the right to release any security held for the franchisee's obligations under the lease without notifying the guarantor. This also includes the ability to accept security, add, substitute, or release guarantors, or compromise or settle any amount due or claimed to be owing under the lease, all without notice to the guarantor.

This provision in the Aira Fitness franchise agreement is significant for potential guarantors. It means that the guarantor's obligations remain in effect regardless of any actions taken by the Franchisor's Affiliate concerning the security for the franchisee's lease obligations. The guarantor will not be informed if the security is released or altered, which could potentially increase their risk.

The guarantor is also responsible for staying informed about the franchisee's financial condition, performance under the lease, and operation of the premises. This places the onus on the guarantor to actively monitor the franchisee's business and financial health, as Aira Fitness's Affiliate has no obligation to disclose any information, even if it increases the guarantor's risk. This is a notable point for anyone considering acting as a guarantor for an Aira Fitness franchise, as it requires a proactive approach to risk management and due diligence.