Under the Aira Fitness Guaranty, who is the Guarantor?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
be paid in full.
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- Reports. You must have provided all required reports to us in accordance with Section 10.
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- Modernization. You must have complied with the provisions of Section 5.F.
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- Guarantee. In the case of an installment sale for which we have consented to you or any Owner retaining a security interest or other financial interest in this Agreement or the business operated hereunder, you or such Owner, and the guarantors, are obligated to guarantee the performance under this Agreement until the final close of the installment sale or the termination of such interest, as the case may be.
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Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the guarantors under the Aira Fitness agreement include each Owner. Specifically, in the event of an installment sale where the franchisee or any Owner retains a security interest or other financial interest, they and the guarantors are obligated to guarantee performance under the Franchise Agreement.
Furthermore, in the context of transferring a franchise, Aira Fitness requires that each Owner and each guarantor execute all necessary transfer documents, including a general release, as a condition of the transfer. This ensures that all parties with a vested interest in the franchise are committed to fulfilling the obligations outlined in the agreement, even during a transfer of ownership.
In the Multi-Unit Development Agreement, Aira Fitness requires that the obligations are assumed by all of the Owners of the Developer, and all such Owners must execute the Guaranty and Assumption of Obligations which is attached as an exhibit to the agreement. This means that the personal assets of the owners could be at risk if the Aira Fitness business fails.