Is there a Guaranty and Assumption of Obligations agreement included in the 1 800 Packouts FDD?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (1) his direct and immediate liability under this guaranty shall be joint and several; (2) he shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) such liability shall not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other person; and (4) such liability shall not be diminished, relieved or otherwise affected by an extension of time, credit or other indulgence which Franchisor may from time to time grant to Franchisee or to any other person, including without limitation, the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement.
Each of the undersigned waives all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this guaranty.
If Franchisor is required to enforce this guaranty in a judicial or arbitration proceeding, and prevails in such proceeding, it shall be entitled to reimbursement of its costs and expenses, including, but not limited to, reasonable accountants', attorneys', attorneys' assistants', arbitrators' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding. If Franchisor is required to engage legal counsel in connection with any failure by the undersigned to comply with this guaranty, the undersigned shall reimburse Franchisor for any of the above-listed costs and expenses incurred by it.
Guarantor agrees to be personally bound by the dispute resolution obligations under Section 17 of the Agreement.
same day and year as the Agreement was executed. GUARANTORS: [Signature] [Print Name] [Date] IN WITNESS WHEREOF, each of the undersigned has hereunto affixed his signature on the
EXHIBIT B
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, Exhibit B includes a guaranty agreement. This agreement stipulates that the guarantor's liability is joint and several, meaning each guarantor is fully responsible for the entire debt.
The agreement also specifies that the guarantor's obligation to fulfill the agreement remains even if 1 800 Packouts provides extensions or indulgences to the franchisee. The guarantor waives any rights to reimbursement or subrogation from the franchisee that may arise from fulfilling the guaranty.
Furthermore, should 1 800 Packouts need to enforce the guaranty through legal or arbitration proceedings and win, the guarantor is responsible for covering all associated costs and expenses, including legal fees and travel expenses. The guarantor also agrees to adhere to the dispute resolution obligations outlined in Section 17 of the Franchise Agreement.