What is the 1-800-GOT-JUNK? Guarantor's obligation if the Franchisee fails to perform the terms of the Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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, mo
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document (FDD) for 1-800-GOT-JUNK? refers to a Guarantor who agrees to ensure the Franchisee fulfills their obligations under the Franchise Agreement. The Guarantor warrants that the facts contained in the agreement's recitals are correct. This indicates the Guarantor has confirmed the accuracy of the information presented in the preliminary statements of the agreement.
The Guarantor's obligations extend throughout the entire term of the Franchise Agreement, including any extensions or renewals. The Guarantor remains responsible until the Franchisee has fully performed all terms, covenants, and conditions of all agreements and dealings with 1-800-GOT-JUNK?, or until the Franchisor has discharged these obligations. This means the Guarantor's responsibility continues for the duration of the franchise relationship and until all financial and operational commitments are met.
The 1-800-GOT-JUNK? FDD also stipulates that the Franchisor is not obligated to take action against the Franchisee or any other guarantor before enforcing the Guarantee. The Franchisor has the discretion to pursue remedies against the Guarantor without first exhausting other options, such as pursuing collateral or other guarantors. The Guarantor also confirms that they have not received any representations or agreements that would limit or qualify the terms of the Guarantee. This ensures that the Guarantor fully understands and accepts the obligations outlined in the Guarantee, without any misunderstandings or hidden conditions.