Is a Guaranty required for the Aira Fitness Pod Lease Agreement, and if so, what is the condition for its execution?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's |
|---|---|---|
| WITNESSETH | ||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. 200 Wheaton, IL 60189 Attn: Alissa Carter Verson | |
| (b) | Franchisee's Address for Notice: With a copy of all notices going to: (Franchisee): | |
| (c) | Concurrently with the execution of this Agreement a material inducement of Franchisor's Affiliate's obligations under this Agreement, , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, a Guaranty is required for the Pod Lease Agreement. Specifically, concurrently with the execution of the Lease Agreement, the franchisee (You) must ensure that the Guarantor executes and delivers a Guaranty to Franchisor's Affiliate. This Guaranty must be in the form attached as Schedule 2 to the Lease Agreement.
This requirement means that as a condition of the Franchisor's Affiliate entering into the Lease Agreement, a Guarantor, who is the franchisee, must guarantee the franchisee's full performance under the Lease Agreement. This is a material inducement for the Franchisor's Affiliate to fulfill its obligations under the Lease Agreement.
In practical terms, this means that a prospective Aira Fitness franchisee will need to find a guarantor acceptable to the Franchisor's Affiliate, typically someone with sufficient assets or financial stability, to guarantee the franchisee's obligations under the lease. This is a common practice in franchising, especially for new franchisees or those with limited business experience, as it provides the franchisor with additional security that the lease obligations will be met.