If no individual meets the definition of 'Owner' for an Aira Fitness franchise, who must provide the guarantee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All Owners of a franchisee that is a corporation, limited liability company or partnership or other legal entity must execute the form of undertaking and guarantee at the end of this Agreement.
Any person or entity that at any time after the date of this Agreement becomes an Owner pursuant to the provisions of Section 11 or otherwise must execute the form of undertaking and guarantee at the end of this Agreement.
In the event no individual meets the definition of Owner, all owners we designate must provide the guarantee.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if no individual meets the definition of 'Owner' for a franchise, all owners designated by Aira Fitness must provide the guarantee.
This stipulation ensures that Aira Fitness has a mechanism to secure the financial and operational commitments to the franchise agreement, even in cases where the traditional ownership structure doesn't apply. This could arise in complex ownership arrangements where no single person qualifies as an 'Owner' under the agreement's definition.
For a prospective franchisee, this means understanding who Aira Fitness might designate as a guarantor in non-standard ownership scenarios. It's crucial to clarify with Aira Fitness the criteria they use for designating owners for guarantee purposes, especially if the franchise's ownership structure is unique or involves multiple entities. This ensures all parties understand their obligations and potential liabilities under the franchise agreement.