What is the name of the agreement that the Guarantor signs with 1-800-GOT-JUNK??
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT F Guarantee, Postponement and Covenants 4934-9833-2741.1 GUARANTEE, POSTPONEMENT AND COVENANTS THIS GUARANTEE, POSTPONEMENT AND COVENANTS AGREEMENT (this “Agreement”) is effective as of _________________, 20 (the “Effective Date”). BETWEEN: ________________________________, a [single/married] person, of
(the “Guarantor”) AND: 1-800-GOT-JUNK? LLC, a Delaware limited liability company having its head office at 887 Great Northern Way, Suite 301, Vancouver, BC, V5T 4T5, Canada (the “Franchisor”) 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?”.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the agreement signed by the Guarantor is called the "Guarantee, Postponement and Covenants Agreement." This agreement is also referred to as the "Guarantee".
The purpose of this agreement is to induce 1-800-GOT-JUNK? to enter into a Franchise Agreement with the Franchisee. The Guarantor, who often has a vested interest in the Franchisee's success (e.g., as a shareholder, director, or officer), agrees to guarantee the Franchisee's obligations under the Franchise Agreement.
The spouse of the guarantor may also be required to sign a Spousal Consent, acknowledging that the Guarantee is binding on their separate and community property. This consent ensures that the spouse is aware of the financial obligations and potential liabilities associated with the Guarantee. Prospective franchisees should carefully review the Guarantee, Postponement and Covenants Agreement and Spousal Consent with their legal and financial advisors to fully understand their obligations and potential liabilities.