Under what circumstances can Aira Fitness's Affiliate demand additional collateral for the Pod?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
: (i) RECEIPT OF THE PURCHASED EQUIPMENT, (ii) THAT FRANCHISEE HAS HAD THE OPPORTUNITY TO INSPECT THE CONDITION OF THE PURCHASED EQUIPMENT, AND (iii) FRANCHISEE ACCEPTS THE CONDITION OF THE EQUIPMENT AS DELIVERED ON:
| Date: | |--------------| | Franchisee: | | By: | | (Print Name) |
EXHIBIT 1 TO PURCHASE AGREEMENT
Pod Specifications
EXHIBIT I POD PACKAGE LEASE
POD LEASE AGREEMENT
| THIS LEASE Premises"). | AGREEMENT (the "Agreement") is made on the day of, 20, (the "Effective Date") by and between Pure Gym Equipment LLC, an Illinois limited liability company ("Franchisor's Affiliate") and, a, (hereinafter called "You" or "Franchisee") for the lease of Pod (as hereinafter defined) Aira Fitness franchise business located at ("Business | for Franchisee's |
|---|---|---|
| WITNESSETH | ||
| Affiliate | WHEREAS, Franchisee is in the business of leasing and selling fitness equipment buildings ("Pods") to Aira Fitness franchisees; WHEREAS, Franchisee is leasing from Franchisor's Affiliate and Franchisor's Affiliate is leasing to Franchisee a Pod on the terms described in this Agreement. NOW THEREFORE, intending to be legally bound, the parties agree as follows: Basic Lease Terms. |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, a franchisee is required to have a guarantor execute and deliver a Guaranty to the Franchisor's Affiliate as a condition and material inducement of the Franchisor's Affiliate's obligations under the Lease Agreement. This Guaranty, in the form attached as Schedule 2, ensures the franchisee's full performance under the lease agreement for the Pod.
In simpler terms, when leasing a Pod for their Aira Fitness franchise, the franchisee must provide a guarantor who promises to cover the franchisee's obligations. This guarantor offers security to Aira Fitness's affiliate, ensuring that lease payments and other responsibilities are fulfilled. The specific details of this guarantee are outlined in Schedule 2 of the lease agreement.
This requirement is a fairly standard practice in franchising, especially when significant assets like a fitness Pod are being leased. It mitigates the risk for the franchisor's affiliate by providing an additional layer of financial security. Prospective Aira Fitness franchisees should carefully review the Guaranty in Schedule 2 and understand the full extent of the guarantor's obligations, as well as ensure they have a suitable guarantor lined up before entering into the lease agreement.