What happens if a director, officer, shareholder, partner, or member of a 1-800-GOT-JUNK? franchise fails to sign the guarantee agreement?

Question

Accepted Answer

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:

Source: Item 22 — Contracts (FDD page 24)