Does the Aira Fitness Guaranty require the Guarantor to cure a Default at the Guarantor's sole cost?

The 2025 Aira Fitness FDD does not explicitly state that a guarantor is required to cure a default at their sole cost. However, it does outline circumstances related to defaults and the guarantor's obligations in the event of a transfer. Specifically, in the case of an installment sale where the franchisor has consented to the franchisee or any owner retaining a security interest, the guarantors are obligated to guarantee performance under the agreement until the final close of the installment sale or the termination of such interest.

Additionally, the FDD mentions that if a franchisee fails to cure a default, Aira Fitness has the option to enter the premises and operate the business, charging the franchisee a management fee not exceeding 15% of Gross Sales, plus expenses. The franchisee is also required to indemnify Aira Fitness for any claims arising from their operation of the business during the default period.

Furthermore, the FDD states that in order to transfer the franchise, all amounts owed to Aira Fitness, its affiliates, suppliers, or the landlord must be paid in full. This implies that any existing defaults would need to be resolved before a transfer can occur. The guarantor must also execute all transfer documents required by Aira Fitness, including a general release.

To fully understand the guarantor's specific obligations regarding curing defaults, a prospective franchisee should seek clarification from Aira Fitness regarding the terms and conditions outlined in the Guaranty agreement.