Does the Aira Fitness Guaranty allow the Franchisor to repeatedly extend 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 specifies the franchisor's rights regarding changes to the Franchise Agreement. Specifically, the Guarantor authorizes Aira Fitness to make changes to the Franchise Agreement, including the ability to repeatedly renew or extend the payment terms or other conditions of the agreement, without requiring further notice to or demand from the Guarantor. This authorization is granted without lessening the Guarantor's liability under the Guaranty.
This clause means that as a guarantor, you are bound by any extensions or renewals of the Franchise Agreement that Aira Fitness grants to the franchisee, even if those extensions occur multiple times. You will not be notified each time an extension is granted, and your obligations as a guarantor remain in effect. This could potentially extend your liability for a longer period than initially anticipated, depending on how many times the agreement is extended or renewed.
It is important for potential guarantors to fully understand the implications of this clause. They should consider the potential long-term financial commitment and the possibility of being held liable for an extended period due to renewals or extensions granted without their direct consent. Seeking legal counsel to review the Guaranty agreement is advisable to fully grasp the extent of the obligations and potential risks involved.