Does the 1-800-GOT-JUNK? Franchise Agreement specify whether the guarantor is required to waive any rights of reimbursement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
any collateral held by Franchisor from the Franchisee, any other guarantor(s), or any other
person; or (g) to pursue any other remedy within the Franchisor’s power.
19.
The Guarantor represents and warrants to the Franchisor that: (a) no representations or agreements
of any kind have been made to the Guarantor that would limit or qualify in any way the terms of
this Agreement; (b) this Agreement is executed at the Guarantor’s request and not at the request of
the Franchisor; and (c) the Guarantor has full power, right and authority to enter into this
Agreement.
4934-9833-2741.1
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IN WITNESS WHEREOF the Guarantor and Franchisor have signed this Agreement under seal
with effect from the date first above written.
GUARANTOR:
FRANCHISOR:
1-800-GOT-JUNK?
LLC, a Delaware limited
liability company
By:
By:
(authorized signatory)
Dated:
Dated:
4934-9833-2741.1
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Spousal Consent
I understand that my spouse, [name of spouse] has signed a Guarantee, Postponement and Covenants
(“Guarantee”) with respect to the franchise granted to [name of Franchisee] by 1-800-GOT-JUNK?
LLC
(“Franchisor”) pursuant to a Franchise Agreement.
The Guarantee is an obligation binding upon the
separate property assets and income of my spouse and is also binding upon the community property of
our marital community.
I have read and I understand the terms of the Guarantee.
I further understand that
under the terms of the Guarantee, if my spouse defaults under the Guarantee, Franchisor may collect from
the community property owned by my spouse and me.
Such community property includes the income of
the marital community and the assets of the marital community.
I acknowledge that the Guarantee is a
community obligation, and I consent to my spouse’s participation in the Guarantee.
Except to the extent
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the 1-800-GOT-JUNK? Franchise Agreement doesn't explicitly state that a guarantor is required to waive rights of reimbursement. However, the agreement includes a guarantee where the guarantor agrees to ensure the franchisee fulfills all obligations to the franchisor. The guarantor also warrants that they have the authority to enter the agreement and that no limitations have been made that would qualify the terms of the agreement.
This implies that the guarantor is fully responsible for the franchisee's obligations, which could indirectly affect their rights of reimbursement. The agreement also includes a spousal consent section, acknowledging that the guarantee is a community obligation and can impact community property.
Prospective franchisees and their guarantors should carefully review the guarantee agreement and seek legal counsel to fully understand the implications of these provisions. It is important to clarify the extent of the guarantor's liability and whether any rights of reimbursement are affected or waived by entering into the guarantee agreement with 1-800-GOT-JUNK?.