Who is required to sign a personal guaranty for the Aira Fitness franchise?

According to the 2025 Aira Fitness Franchise Disclosure Document, all owners of the franchisee must sign a personal guaranty. This means that if the franchisee is a business entity (like a corporation or LLC), each individual who owns a stake in that entity is required to personally guarantee the franchise agreement.

In practical terms, this personal guarantee holds each owner individually responsible for the financial obligations and performance of the franchise. If the Aira Fitness franchise fails to meet its financial obligations or breaches the franchise agreement, Aira Fitness can pursue the personal assets of the owners to recover any losses. This is a standard practice in franchising, as it provides the franchisor with an additional layer of security and ensures that the owners are fully committed to the success of the business.

Furthermore, in the event of a transfer of the franchise that results in a change of control, each of the transferee's owners must execute Aira Fitness's then-current form of personal guaranty and undertaking. This ensures that the new owners are also personally liable for the franchise's obligations under the updated franchise agreement. This requirement is in place to protect Aira Fitness's interests and maintain the integrity of the franchise system.

In addition to the personal guaranty, owners and guarantors may be subject to non-compete agreements, preventing them from engaging in similar businesses during and after the term of the franchise agreement. They must also agree to a limited time frame for asserting any claims against Aira Fitness, typically the shorter of the applicable statute of limitations or one year following the termination or expiration of the agreement.