What is the Guarantor's obligation to 1-800-GOT-JUNK? regarding the accuracy of recitals A, B, and C?

According to the 2025 FDD, the Guarantor plays a crucial role in the franchise agreement between 1-800-GOT-JUNK? and the franchisee. The Guarantor essentially vouches for the accuracy of certain foundational statements, known as recitals, that underpin the agreement. These recitals (A, B, and C) outline the basis for the franchise relationship.

Specifically, the Guarantor warrants that the facts presented in Recitals A, B, and C are correct. Recital A confirms that 1-800-GOT-JUNK? has granted a license to the franchisee to operate a junk removal business under the 1-800-GOT-JUNK? name. Recital B states that the Guarantor's agreement to execute and deliver the Guarantee Agreement is what induced 1-800-GOT-JUNK? to enter into the Franchise Agreement with the Franchisee. Recital C clarifies that the Guarantor, by being a shareholder, director, officer, member, or partner of the franchisee, benefits directly from the franchise agreement.

This obligation means that the Guarantor is legally affirming the truthfulness of these statements. If these recitals are later found to be inaccurate, 1-800-GOT-JUNK? could potentially take legal action against the Guarantor for breach of warranty. This arrangement provides 1-800-GOT-JUNK? with an additional layer of security, ensuring that the fundamental assumptions upon which the franchise agreement is based are valid and truthful. The guarantor is typically a principal in the franchisee's business, so this arrangement ensures that someone with a vested interest in the franchisee's success is attesting to the validity of the agreement.