Are all Owners of the Developer required to personally guarantee the Aira Fitness Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement must be personally guaranteed and the obligations hereunder assumed by all of the Owners of the Developer, and all such Owners must execute the Guaranty and Assumption of Obligations which is attached hereto as Exhibit C concurrently with the execution of this Agreement by Developer.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if you are signing a Multi-Unit Development Agreement, all owners of the Developer entity are required to personally guarantee the agreement. This means each owner must sign a Guaranty and Assumption of Obligations, as detailed in Exhibit C of the agreement.
This requirement has significant implications for prospective franchisees. By signing a personal guarantee, each owner becomes personally liable for the financial and operational obligations of the Aira Fitness franchise. This could put their personal assets at risk if the business fails to meet its obligations.
Franchisors often require personal guarantees to ensure that franchisees are fully committed to the business and to provide an additional layer of financial security. It is crucial for all owners to carefully review the Guaranty and Assumption of Obligations and understand the full extent of their personal liability before signing the Multi-Unit Development Agreement with Aira Fitness.