What is the obligation of the Franchisee's Guarantor regarding the Aira Fitness franchise lease agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Attachment C to the Franchise Agreement
PERSONAL GUARANTEE AND AGREEMENT TO BE BOUND PERSONALLY BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT
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 Aira Fitness's 2025 Franchise Disclosure Document, the guarantor has specific obligations related to the franchise agreement, but the document does not explicitly detail the guarantor's obligations regarding the lease agreement. However, Attachment C outlines the obligations of the guarantor related to the franchise agreement. The guarantor agrees to ensure the franchisee pays all amounts and performs all obligations under the Franchise Agreement. This includes being bound by the non-compete and dispute resolution provisions as if the guarantor had signed the Franchise Agreement directly.
Attachment B to the Franchise Agreement allows Aira Fitness to obtain information from third-party providers, including the landlord, regarding any Aira Fitness Business owned or guaranteed by the franchisee's owners. This suggests that the landlord may require a personal guarantee as part of the lease agreement.
While the FDD excerpts discuss lease-related matters such as Aira Fitness's right to assume the lease under certain conditions, and the landlord's agreement not to require a lien on the tenant's personal property, it does not specify the guarantor's obligations concerning the lease agreement. A prospective franchisee should clarify with Aira Fitness what specific obligations a guarantor undertakes with respect to the lease agreement, as it is not explicitly detailed in the provided FDD excerpts.