Does the Aira Fitness Guaranty allow the Franchisor to repeatedly accelerate the Franchise Agreement without the Guarantor's consent?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4. | Guarantor's Authorization to Franchisor. | | Guarantor(s) authorizes Franchisor, | without notice or demand and without lessening Guarantor's liability under this Guaranty, from time | to time: (a) to make or approve changes to the Franchise Agreement; (b) to repeatedly compromise, | renew, extend, accelerate, or otherwise change the time for payment or other terms of the Franchise | Agreement; (c) to take and hold security for the payment of amounts due under the Franchise | Agreement or this Guaranty, and exchange, enforce, waive, and release any such security, with or | without the substitution of new collateral; (d) to determine how, when, and what application of | payments and credits shall be made on amounts due under the Franchise Agreement; and (j) to assign | or transfer this Guaranty, in whole or in part.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the Guaranty provided by the guarantor(s) authorizes Aira Fitness to repeatedly accelerate the Franchise Agreement without notice or demand and without lessening the guarantor's liability. Specifically, the guarantor authorizes Aira Fitness to make changes to the Franchise Agreement and to repeatedly compromise, renew, extend, accelerate, or otherwise change the time for payment or other terms of the Franchise Agreement.
This means that as a guarantor, you are agreeing that Aira Fitness can modify the payment schedule or other terms of the agreement, potentially requiring faster payments or changes to other obligations. This can significantly impact the financial obligations of both the franchisee and the guarantor, as acceleration could lead to needing to pay the full amount sooner than initially anticipated.
It is important for a prospective Aira Fitness franchisee and their guarantor to fully understand the implications of this clause. They should seek legal counsel to assess the potential risks and liabilities associated with granting Aira Fitness such broad authority to modify the agreement's terms. The guarantor should also consider their financial capacity to handle potential accelerations or changes to the payment schedule, as they are ultimately responsible for ensuring the franchisee's obligations are met.