factual

Does the 1-800-GOT-JUNK? Franchise Agreement specify the form or format of the guarantee agreement?

1_800_Got_Junk Franchise · 2025 FDD

Answer 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”).

Source: Item 22 — Contracts (FDD page 24)

What This Means (2025 FDD)

According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Exhibit F is a Guarantee Agreement. The document includes a sample Guarantee, Postponement, and Covenants Agreement.

The agreement starts with an effective date and identifies the Guarantor and 1-800-GOT-JUNK? LLC as the Franchisor. It includes recitals that explain the purpose of the agreement, such as the granting of a license to the Franchisee and the Guarantor's agreement to execute and deliver the agreement to induce the Franchisor to enter into the Franchise Agreement. The guarantor is often a shareholder, director, officer, member, or partner of the franchisee.

The agreement includes a guarantee by the guarantor that the facts in the recitals are correct. The guarantor agrees to perform all terms, covenants, and conditions of all agreements between the franchisee and 1-800-GOT-JUNK? during the term of the Franchise Agreement and any extensions or renewals, until all obligations are fully performed or discharged by 1-800-GOT-JUNK?. The guarantor also makes representations and warranties to 1-800-GOT-JUNK?, including that there are no limiting representations or agreements, the agreement is executed at the guarantor's request, and the guarantor has the authority to enter into the agreement.

There is also a section for spousal consent, where the spouse acknowledges that they have read and understand the terms of the Guarantee, and consent to their spouse's participation in the Guarantee, understanding that the Guarantee is a community obligation.

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.