If the Aira Fitness franchisee is a partnership, are the partners jointly and severally liable?
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 a franchisee is a partnership, each partner is required to sign a personal guarantee, making them jointly, individually, and severally liable for the franchise's obligations. This means that each partner is responsible for the full amount of the franchise's debts and obligations.
The Personal Guarantee and Agreement to be Bound Personally by the Terms and Conditions of the Franchise Agreement states that the undersigned, including their heirs, successors, and assigns, jointly, individually, and severally become surety and guarantor for the payment of all amounts and the performance of the covenants, terms, and conditions in the Franchise Agreement. This includes, but is not limited to, arbitration and other dispute resolution provisions.
Furthermore, each partner agrees to be personally bound by every condition and term in the Franchise Agreement, including non-compete provisions and dispute resolution processes. This personal guarantee is construed as if each partner had individually executed the Franchise Agreement with identical terms and conditions. This is a standard practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the franchisees, especially in cases of partnership or corporate entities.