According to the 1-800-GOT-JUNK? franchise agreement, what does the Guarantor warrant regarding Recitals A, B, and C?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The Guarantor warrants that the facts contained in Recitals A, B, and C are correct.
2.
The Guarantor shall at all times during the term of the Franchise Agreement and during any exercised extension or renewal of the term of the Franchise Agreement and until all of the terms, covenants and conditions of all agreements and dealings between the Franchisee and the Franchisor have been fully and completely performed by the Franchisee or otherwise discharged by the Franchisor:
4934-9833-2741.1
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the Guarantor to the franchise agreement warrants that the facts contained in Recitals A, B, and C are correct. Recital A states that the Franchisor granted a license to the Franchisee for the establishment and operation of a junk removal business under the 1-800-GOT-JUNK? name through a Franchise Agreement. Recital B indicates that the Guarantor agreed to execute and deliver the agreement to induce the Franchisor to enter into the Franchise Agreement with the Franchisee. Recital C specifies that the Guarantor is a shareholder, director, officer, member, or partner of the Franchisee who benefits from the Franchise Agreement.
In simpler terms, the guarantor is confirming that the basic facts about the franchise arrangement are true. This includes that a franchise agreement exists, that the guarantor is incentivizing the franchisor to grant the franchise, and that the guarantor has a vested interest in the franchisee's success.
This warranty is a legal assurance to 1-800-GOT-JUNK? that the fundamental reasons for the guarantee are valid. If any of these recitals were false, it could potentially undermine the enforceability of the guarantee agreement. Prospective franchisees should ensure that any guarantor fully understands and agrees with these recitals before signing the guarantee agreement.