What information about the personal guarantors is required in the Aira Fitness Franchise Agreement?
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, personal guarantors must agree to be bound by the terms and conditions of the Franchise Agreement. Specifically, they guarantee the franchisee's payment of all amounts and the performance of all covenants, terms, and conditions within the agreement. This includes, but isn't limited to, the arbitration and dispute resolution provisions.
Furthermore, personal guarantors must agree to be personally bound by each condition and term in the Franchise Agreement. This encompasses non-compete provisions and dispute resolution processes. The agreement stipulates that the Personal Guarantee will be interpreted as if the guarantors themselves executed a Franchise Agreement with identical terms and conditions.
In essence, Aira Fitness requires personal guarantors to fully commit to the obligations of the franchisee as if they were the franchisee themselves. This ensures that Aira Fitness has recourse to the guarantor's assets and commitment in case the franchisee fails to meet their obligations under the agreement. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.