Does the Aira Fitness Guaranty allow the Franchisor to repeatedly extend 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
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Guarantor authorizes Aira Fitness to repeatedly extend the time for payment or other terms of the Franchise Agreement without requiring separate notice or demand. This authorization is part of the overall Guaranty agreement, where the Guarantor provides an unconditional warrant to Aira Fitness that the Developer (franchisee) will fulfill all obligations under the Franchise Agreement.
This aspect of the Guaranty means that as a guarantor, you are agreeing in advance to any changes Aira Fitness makes to the payment schedule or other terms with the franchisee. You will not be notified each time such a change is made, nor will your consent be required at the time of the change. This could potentially increase your risk as a guarantor, since the franchisee's obligations could be altered without your direct input, yet you remain responsible for ensuring those obligations are met.
It is important for a prospective Aira Fitness franchisee and any potential guarantor to fully understand the implications of this clause. The guarantor should assess their financial capacity to cover potential extensions or changes to the payment terms. Seeking legal counsel to review the Guaranty agreement is advisable to fully understand the scope of the obligations and risks involved.