Does subletting the Premises affect the Guarantor's obligations under the Aira Fitness Guaranty?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Lease may be assigned, modified or amended in whole or in part or the Premises may be sublet in whole or in part without notice to Guarantor and without releasing Guarantor or affecting Guarantor's obligations under this Guaranty in any way.
Franchisor's Affiliate may, from time to time, and without notice to Guarantor, release any security that Franchisor's Affiliate may have for the obligations of Franchisee under the Lease or accept security therefor; add, substitute or release guarantors; or compromise or settle any amount due or owing; or claimed to be owing under the Lease; and no such action by Franchisor's Affiliate or any other action which Franchisor's Affiliate may take or omit in connection with the Lease shall affect this Guaranty or Guarantor's obligations in any way.
Guarantor expressly waives notice of acceptance of this Guaranty and diligence of collecting any sums due under the Lease or the taking of any action with reference to any default under the Lease or to any liability under this Guaranty.
Franchisor's Affiliate has no duty to disclose to Guarantor any information it receives regarding the financial status of Franchisee, whether or not such information indicates that the risk of Guarantor under this Guaranty has been or may be increased. Guarantor assumes full responsibility for being and keeping informed of Franchisee's financial condition, Franchisee's performance under the Lease, and Franchisee's use and operation of the Premises.
Guarantor hereby subordinates all its claims for payment of any indebtedness of Franchisee to Guarantor, if any, to Franchisor's Affiliate's right to receive payment from Franchisee of all sums due under the Lease and waives any rights it may have to participate in any security for the Lease or to enforce any remedy which Franchisor's Affiliate may have against Franchisee or any other person or entity that may now or hereafter by liable on the Lease.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the guarantor's obligations under the Aira Fitness Guaranty remain unaffected if the premises are sublet. The lease may be assigned, modified, or amended, either in whole or in part, or the premises may be sublet in whole or in part, without notice to the guarantor. These actions will not release the guarantor from their obligations or affect them in any way.
Furthermore, Aira Fitness's affiliate has the right to release any security held for the franchisee's obligations under the lease, accept security, add, substitute, or release guarantors, or compromise or settle any amount due or claimed to be owing under the lease. These actions by Aira Fitness's affiliate will not affect the Guaranty or the guarantor's obligations.
The guarantor also waives notice of acceptance of the Guaranty and diligence of collecting any sums due under the lease, or the taking of any action regarding a default under the lease or any liability under the Guaranty. The affiliate of Aira Fitness has no duty to disclose any information about the franchisee's financial status to the guarantor, and the guarantor assumes full responsibility for staying informed of the franchisee's financial condition, performance under the lease, and use and operation of the premises.
This arrangement is typical in franchising, where the franchisor seeks to maintain maximum flexibility in managing the lease and franchisee relationships without jeopardizing the security provided by the guarantor. The guarantor's obligations remain firm regardless of changes to the lease or the franchisee's situation, placing the onus on the guarantor to stay informed and manage their risk accordingly.