factual

For the 1-800-GOT-JUNK? franchise agreement, what is the definition of 'Guarantor'?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

ve Date”). BETWEEN: ________________________________, a [single/married] person, of


(the “Guarantor”) AND: 1-800-GOT-JUNK? LLC, a Delaware limited liability company having its head office at 887 Great Northern Way, Suite 301, Vancouver, BC, V5T 4T5, Canada (the “Franchisor”) WHEREAS: A. By a Franchise Agreement made effective the effective date hereof (the “Franchise Agreement”), the Franchisor granted a licence to ____________________ (the “Franchisee”) for the establishment and operation of a retail business offering junk removal services under the name “1-800- GOT-JUNK?”. B. In order to induce the Franchisor to enter into the Franchise Agreement with the Franchisee, the Guarantor has agreed to execute and deliver this Agreement. C. The Guarantor, who is a shareholder (directly or indirectly), director, officer, member or partner of the Franchisee and thereby benefits from the Franchise Agreement and stands to benefit from the grant of the licence to the Franchisee, has agreed to execute and deliver this Agreement. D. Capitalized terms used but not defined in this Agreement shall have their respective meanings as defined the Franchise Agreement. THIS AGREEMENT WITNESSES that in consideration of the Franchisor entering into the Franchise Agreement and other good and valuable consideration (the receipt and sufficiency whereof is hereby acknowledged by the Guarantor), the Guarantor covenants and agrees with and in favor of the Franchisor as follows: PART 1 - GUARANTEE 1. 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

  • 2 - (a) guaranty the full and punctual payment and performance of all present and future obligations, liabilities, covenants and agreements required to be observed and performed or paid or reimbursed by the Guarantor under or relating to the Franchise Agreement, plus all costs, expenses and fees (including the reasonable fees and expenses of the Franchisor's counsel) in any way relating to the enforcement or protection of Franchisor's rights hereunder, including without limitation, (i) royalty, minimum royalty, marketing royalty, amounts owing for products and inventory purchased by the Franchisee, rent, additional rent, monies, charges and other amounts of any kind whatsoever payable by the Franchisee to the Franchisor pursuant to any agreements or dealings between the Franchisee and the Franchisor, and (ii) the prompt and complete performance of any and all terms, covenants and conditions on the part of the Franchisee to be kept, observed and performed under any agreements or dealings between the Franchisee and the Franchisor, including without limitation the terms, covenants and conditions on the part of the Franchisee to be kept, observed and performed under the

Source: Item 22 — Contracts (FDD page 24)

What This Means (2025 FDD)

According to the 2025 FDD, the Guarantor in the 1-800-GOT-JUNK? franchise agreement is defined within the context of an agreement where the franchisor grants a license to a franchisee to operate a junk removal business under the 1-800-GOT-JUNK? name. The Guarantor agrees to execute and deliver the agreement to induce the Franchisor to enter into the Franchise Agreement with the Franchisee.

The Guarantor is typically a shareholder, director, officer, member, or partner of the Franchisee, and thus benefits from the Franchise Agreement. This party agrees to execute and deliver the agreement, providing a guarantee to the franchisor. The agreement stipulates that the Guarantor warrants the accuracy of the recitals outlined in the agreement, which include the granting of the franchise license and the Guarantor's agreement to support the Franchisee's obligations.

The Guarantor's obligations extend throughout the term of the Franchise Agreement, including any extensions or renewals, until all terms, covenants, and conditions between the Franchisee and 1-800-GOT-JUNK? have been fully performed or discharged. This arrangement ensures that 1-800-GOT-JUNK? has recourse to an individual or entity with a vested interest in the franchisee's success, providing an additional layer of security for the franchisor.

The agreement also includes a spousal consent clause, acknowledging that the Guarantee is an obligation binding upon the separate and community property of the Guarantor and their spouse. This consent ensures that the spouse understands and agrees to the financial implications of the Guarantee, including the potential for the franchisor to collect from community property in the event of a default by the Guarantor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.