Does the Aira Fitness Guaranty allow the Franchisor to repeatedly accelerate the time for payment under 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 Aira Fitness's 2025 Franchise Disclosure Document, the Guaranty agreement does allow the franchisor to repeatedly accelerate the time for payment or change other terms of the Franchise Agreement without needing to notify or obtain consent from the guarantor. This authorization is explicitly stated within the Guaranty agreement.
Specifically, the guarantor is authorizing Aira Fitness to make changes to the Franchise Agreement, including accelerating payment terms. This means that Aira Fitness has the right to demand earlier payments than initially agreed upon in the Franchise Agreement, and the guarantor is bound by this change without further consent. The guarantor also authorizes Aira Fitness to compromise, renew, extend, or otherwise change the time for payment or other terms of the Franchise Agreement.
This clause is significant for potential Aira Fitness franchisees because it places a considerable amount of financial risk on the guarantor. The guarantor's assets are at risk if the franchisee defaults, and the franchisor has broad authority to modify the payment terms, potentially increasing the financial burden on the guarantor without their explicit approval. Prospective franchisees should carefully consider the implications of this clause and seek legal counsel to fully understand their obligations and potential liabilities under the Guaranty.