Does the Aira Fitness Guaranty allow the Franchisor to repeatedly compromise 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 Aira Fitness to repeatedly compromise the Franchise Agreement without needing to notify the Guarantor. The Guarantor, by signing the Guaranty, authorizes Aira Fitness to make changes to the Franchise Agreement, including compromising terms, without any additional notice or demand. This authorization does not lessen the Guarantor's liability under the Guaranty.
This clause means that a Guarantor's obligations can change without their direct consent or knowledge, potentially increasing their financial exposure. The Guarantor remains responsible even if the terms of the agreement are altered. This is a significant risk for the guarantor, as changes to the franchise agreement could make it more difficult for the franchisee to succeed, thereby increasing the likelihood that the guarantor will have to fulfill their obligations.
It is important for potential Aira Fitness franchisees and their guarantors to fully understand the implications of this clause. They should seek legal counsel to assess the risks involved before signing the Guaranty. Franchisees should negotiate with Aira Fitness to limit the scope of changes that can be made without the Guarantor's consent, or to require notification of any such changes.