Does the 1-800-GOT-JUNK? Franchise Agreement specify any exceptions to the requirement for all directors, officers, shareholders, partners, or members to sign a guarantee?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT F Guarantee, Postponement and Covenants 4934-9833-2741.1 GUARANTEE, POSTPONEMENT AND COVENANTS THIS GUARANTEE, POSTPONEMENT AND COVENANTS AGREEMENT (this “Agreement”) is effective as of _________________, 20 (the “Effective 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 Franchise Agreement; and (b) indemnify and save harmless the Franchisor from any loss, costs or damages arising out of any failure by the Franchisee to observe or perform any and all of the terms, covenants and conditions contained in the Franchise Agreement, (collectively the “Obligations”).
The Guarantor covenants and agrees with the Franchisor as follows: (a) the liability of the Guarantor to the Franchisor shall be for all purposes as if the Guarantor was primary obligor under the Franchise Agreement and any other agreement between the Franchisee and the Franchisor, and not merely a surety for the Obligations of the Franchisee, and the Franchisor shall not be obliged to resort to or exhaust any recourse which the Franchisor may have against the Franchisee or any other person who may be liable to the Franchisor in respect of the Obligations before being entitled to claim against the Guarantor, and the Guarantor renounces all benefits of discussion and division;
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 1-800-GOT-JUNK? includes a Guarantee, Postponement, and Covenants Agreement that outlines the obligations of a guarantor. According to the agreement, the guarantor is typically a shareholder, director, officer, member, or partner of the franchisee who benefits from the franchise agreement. To induce 1-800-GOT-JUNK? to enter into the Franchise Agreement with the Franchisee, the Guarantor has agreed to execute and deliver this Agreement. The guarantor warrants that the facts contained in Recitals A, B, and C are correct.
The agreement states that the guarantor must fulfill all terms, covenants, and conditions of all agreements and dealings between the franchisee and 1-800-GOT-JUNK? until they are completely performed by the franchisee or discharged by 1-800-GOT-JUNK?. The guarantor also makes several representations and warranties to 1-800-GOT-JUNK?, including that no agreements limit the terms of the Guarantee, the agreement is executed at the guarantor’s request, and the guarantor has the authority to enter into the agreement.
The document includes a Spousal Consent section, where the spouse of the guarantor acknowledges that the Guarantee is binding upon their separate and community property. By signing, the spouse consents to the guarantor's participation in the Guarantee, acknowledging that 1-800-GOT-JUNK? may collect from the community property if the guarantor defaults. The 1-800-GOT-JUNK? Franchise Agreement does not specify any exceptions to the requirement for all directors, officers, shareholders, partners, or members to sign a guarantee.