What is the 1-800-GOT-JUNK? Guarantor's obligation if the Franchisee fails to pay monies?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the obligation of the Guarantor is to ensure that all terms, covenants, and conditions of all agreements and dealings between the Franchisee and 1-800-GOT-JUNK? are fully and completely performed by the Franchisee or otherwise discharged by 1-800-GOT-JUNK?. This obligation remains in effect during the term of the Franchise Agreement, including any extensions or renewals.
The Guarantor's agreement is made to induce 1-800-GOT-JUNK? to enter into the Franchise Agreement with the Franchisee. The guarantor acknowledges that they benefit from the franchise agreement as a shareholder, director, officer, member, or partner of the franchisee. The guarantor also warrants that the facts contained in the recitals of the agreement are correct.
Additionally, the spouse of the guarantor acknowledges that the Guarantee is an obligation binding upon the separate property assets and income of the spouse and is also binding upon the community property of their marital community. The spouse consents to the Guarantee, understanding that 1-800-GOT-JUNK? may collect from the community property owned by the spouse and the guarantor if the guarantor defaults under the Guarantee.