What is the guarantor's obligation if the Aira Fitness franchisee fails to make a payment under the equipment lease?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Guaranty is made as of , 20 | , by | ("Guarantor"), |
|---|---|---|
| in favor of PURE | LLC, an Illinois limited liability company ("Franchisor's | |
| GYM | ||
| EQUIPMENT | ||
| Affiliate") with respect to that certain Equipment Lease, dated as of, 20 (the | ||
| "Lease"), by and between Franchisor's Affiliate and ("Franchisee"). | ||
| The undersigned Guarantor is | of Franchisee. Guarantor has agreed to guarantee the | |
| obligations of Franchisee under the Lease, and the execution of this Guaranty is a condition of, and a | ||
| material inducement to, Franchisor's Affiliate entering into the Lease. | Therefore, Guarantor hereby | |
| unconditionally guarantees the prompt, full and complete performance of all of the obligations of | ||
| Franchisee under the Lease. If Franchisee at any time fails to make any payment under the Lease when | due | |
| or fails to perform to comply with any covenant, condition, agreement or term of the Lease, Guarantor shall, | ||
| upon notice from Franchisor's Affiliate and without further demand, pay, perform or comply with the same | ||
| in the same manner and to the same extent as is required of Franchisee. Guarantor understands and | ||
| acknowledges that the Lease may, and likely will, be amended or modified from time to time by agreement | ||
| of Franchisor's Affiliate and Franchisee and that this may be done without notice to or approval of | ||
| Guarantor, it being understood that Guarantor is relying solely on Franchisee to protect its interests in | ||
| connection with such matters. Guarantor hereby waives any suretyship rights or defenses that may be | ||
| available to Guarantor and agrees that: |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a franchisee fails to make a payment or comply with any term of the equipment lease, the guarantor is obligated to fulfill the franchisee's responsibilities. Upon receiving notice from the Franchisor's Affiliate, the guarantor must promptly pay, perform, or comply with the lease terms to the same extent required of the franchisee. This obligation is unconditional, meaning the guarantor's responsibility is not contingent on any other factors.
The guarantor acknowledges that the equipment lease may be modified without their direct notification or approval. The guarantor's reliance is solely on the franchisee to protect their interests regarding any lease amendments. This arrangement places a significant responsibility on the guarantor, as they are bound by the lease terms and any subsequent modifications, even without being directly involved in the amendment process.
The guarantor also waives any suretyship rights or defenses that might typically be available to them. This waiver further strengthens the guarantor's commitment to fulfilling the franchisee's obligations under the lease. By waiving these rights, the guarantor essentially agrees to be fully liable for the franchisee's performance, without the ability to claim certain legal protections or defenses that could otherwise limit their liability. This is a common practice when a franchisor requires a personal guarantee.