Is the Aira Fitness Guaranty for the benefit of any third party?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
to Five Thousand Dollars ($5,000); if the transferee is not an existing AIRA FITNESS franchisee, you must pay us a transfer fee equal to our then-current initial franchise fee.
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- New Franchise Agreement. If the proposed transfer (or a series of transfers) would result in a change in control of the franchisee, the transferee must execute our then-current form of franchise agreement (provided that no initial franchise fee will be due there under); and each of transferee's owners execute our thencurrent form of personal guaranty and undertaking. The parties acknowledge and agree that our then-current form of franchise agreement may be materially different than this Agreement and may include, among other things, different fees.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the personal guaranty and undertaking executed by the transferee's owners in the event of a franchise transfer is for the benefit of Aira Fitness Franchising LLC and any entity with an insurable interest that Aira Fitness designates. This means that these parties can directly enforce the terms of the guaranty.
Specifically, the FDD states that Aira Fitness Franchising LLC and any entity with an insurable interest that they designate must be named as additional insureds on all liability policies required by the franchise agreement. Furthermore, each insurance policy must contain a waiver of subrogation in favor of these additional insureds.
For a prospective Aira Fitness franchisee, this highlights the importance of understanding the full scope of the personal guaranty and the potential liabilities it covers. It also emphasizes the need to maintain adequate insurance coverage and to ensure that Aira Fitness and its designated entities are properly named as additional insureds and that waivers of subrogation are in place to protect all parties involved.