Does the Guarantor have to be notified if Aira Fitness extends the time for payment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
be paid in full.
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- Reports. You must have provided all required reports to us in accordance with Section 10.
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- Modernization. You must have complied with the provisions of Section 5.F.
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- Guarantee. 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.
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Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, it is not specified whether the guarantor will be notified if Aira Fitness extends the time for payment. However, the FDD does state conditions regarding transfers of the franchise agreement where the guarantor may be involved. Specifically, in the case of an installment sale where Aira Fitness consents to the franchisee or any owner retaining a security interest or other financial interest, the guarantors are obligated to guarantee performance under the agreement until the final close of the installment sale or the termination of such interest.
Additionally, in the event of a transfer of the franchise, Aira Fitness requires that the franchisee, each owner, and each guarantor execute all transfer documents in the form designated by Aira Fitness, which documents will include a general release. This indicates that the guarantor's obligations and involvement are considered during a transfer scenario.
While the FDD does not explicitly state whether the guarantor will be notified if Aira Fitness extends the time for payment, it does outline the guarantor's obligations in the context of franchise transfers and potential installment sales. A prospective franchisee should seek clarification from Aira Fitness regarding the specific circumstances under which a guarantor would be notified of changes to payment terms or other relevant information pertaining to the franchise agreement.