Does the Guarantor have to be notified if Aira Fitness accelerates the time for payment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document excerpts provided, it is not clear whether the Guarantor must be notified if Aira Fitness accelerates the time for payment. The excerpts discuss various scenarios related to defaults, termination, transfers, and audits, but none of them specifically address the situation where Aira Fitness accelerates payment terms.
While the document outlines conditions under which Aira Fitness can take certain actions, such as terminating the agreement or requiring payment of amounts owed, it does not explicitly state whether the Guarantor receives direct notification in the event of accelerated payment. The FDD does mention that in the case of an installment sale where the Owner retains a security interest, the guarantors are obligated to guarantee performance under the agreement until the final close of the installment sale or termination of such interest.
To clarify whether the Guarantor would be notified if Aira Fitness accelerates the time for payment, a prospective franchisee should ask Aira Fitness directly about their policies and procedures regarding communication with guarantors in such situations. Specifically, they should inquire about any provisions in the franchise agreement or related documents that address this scenario.