Under the Aira Fitness equipment lease guaranty, who is the guarantor?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | owns and operates an Aira Fitness franchise business and Franchisor's and pre-fabricated modular |
| (a) | Franchisor's Affiliate's Address for Notice: | Pure Gym Equipment LLC 521 S. Jade Lane Round Lake, IL 60073 Attn: Mike Bell |
| With a copy of all notices going to: (Franchisor's Affiliate) | Huck Bouma PC 1755 S. Naperville Rd., Ste. 200 Wheaton, IL 60189 Attn: Alissa Carter Verson | |
| (b) | Franchisee's Address for Notice: With a copy of all notices going to: (Franchisee): | |
| (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 |
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee chooses to lease equipment, the franchisee themselves, identified as the 'Guarantor,' must execute and deliver a Guaranty to the Franchisor's Affiliate, guaranteeing the franchisee's full performance under the lease agreement. This requirement acts as a material inducement for the Franchisor's Affiliate to fulfill its obligations under the equipment lease agreement.
In simpler terms, Aira Fitness requires the franchisee to have someone (typically themselves) guarantee the lease. This means that if the franchisee fails to meet the financial obligations of the lease, the guarantor becomes responsible for those obligations. This arrangement provides the equipment lessor (Franchisor's Affiliate) with an additional layer of financial security.
This type of guarantee is a common practice in franchising, especially when dealing with significant equipment leases. It reduces the risk for the lessor and ensures that there is a party responsible for the lease payments even if the franchisee's business struggles. Prospective Aira Fitness franchisees should carefully consider the implications of acting as a guarantor, as it involves a significant financial commitment and potential liability.