What is the relationship between the guarantor and the franchisee in the Aira Fitness equipment lease agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| (c) | Concurrently with the execution of this Agreement a material inducement of Franchisor's Affiliate's obligations under this Agreement, , who is Franchisee ("Guarantor"), shall execute and shall deliver to Franchisor's Affiliate a Guaranty in the form attached hereto as Schedule 2, guaranteeing Franchisee's full performance under this Agreement. | by Franchisee, as a condition of and currently of |
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 the 2025 Aira Fitness Franchise Disclosure Document, the guarantor is required to execute a Guaranty, ensuring the franchisee's full performance under the lease agreement with Pure Gym Equipment LLC, the Franchisor's Affiliate. This Guaranty is a condition of the Franchisor's Affiliate entering into the lease agreement. The guarantor is identified as someone who is guaranteeing the Franchisee.
Attachment C to the Franchise Agreement further clarifies the guarantor's role. By signing the Personal Guarantee, the guarantor becomes surety for the franchisee's obligations, including payments and adherence to the terms and conditions outlined in the Franchise Agreement. This extends to covering arbitration and dispute resolution provisions.
Furthermore, the guarantor agrees to be personally bound by all terms of the Franchise Agreement, including non-compete clauses and dispute resolution processes. This means the guarantor is treated as if they had personally signed the Franchise Agreement, indicating a significant level of responsibility.
In practical terms, this means that if the Aira Fitness franchisee fails to meet their financial or operational obligations under the lease or Franchise Agreement, the guarantor is personally liable. This is a common practice in franchising, where franchisors seek additional security to ensure franchisees fulfill their commitments. Prospective franchisees should carefully consider the implications of having a guarantor, as it places the guarantor's personal assets at risk.