If the Aira Fitness franchisee is composed of multiple people, what is their liability?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the execution of the Franchise Agreement by us, and for other good and valuable consideration, the undersigned, for themselves, their heirs, successors, and assigns, do jointly, individually and severally hereby become surety and guarantor for the payment of all amounts and the performance of the covenants, terms and conditions in the Franchise Agreement, to be paid, kept and performed by the franchisee, including without limitation the arbitration and other dispute resolution provisions of the Agreement.
Further, the undersigned, individually and jointly, hereby agree to be personally bound by each and every condition and term contained in the Franchise Agreement, including but not limited to the non-compete provisions in paragraph 11.D, the dispute resolution provision in Section 13, and agree that this Personal Guarantee will be construed as though the undersigned and each of them executed a Franchise Agreement containing the identical terms and conditions of this Franchise Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if the franchisee is made up of multiple people, they are jointly, individually, and severally liable as surety and guarantor for the franchisee's obligations. This means that each individual is responsible for the full amount of the debts and obligations. Aira Fitness can pursue any one of them for the entire amount owed, regardless of how ownership is split. This liability extends to all payments, covenants, terms, and conditions outlined in the Franchise Agreement, including arbitration and dispute resolution provisions.
Furthermore, each individual agrees to be personally bound by every term and condition in the Franchise Agreement. This includes, but is not limited to, non-compete provisions and dispute resolution processes. The agreement specifies that the Personal Guarantee will be interpreted as if each person individually executed a Franchise Agreement with identical terms and conditions.
This arrangement is common in franchising to ensure that the franchisor has recourse to the personal assets of all owners, not just the business assets of the franchisee entity. Prospective Aira Fitness franchisees should fully understand the implications of a personal guarantee, as it can significantly impact their personal finances and assets. It is advisable to seek legal counsel to fully understand the extent of this liability before signing the Franchise Agreement.