What is the undersigned agreeing to be personally bound by in the 1 800 Packouts Guaranty and Assumption of Obligations?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of |
|---|
| , 20, by |
| In consideration of, and as an inducement to, the execution of that certain Franchise Agreement of |
| even date herewith (the "Agreement") by 1-800-Packouts Holdco, LLC ("Franchisor"), each of the |
| undersigned hereby personally and unconditionally (a) |
| guarantees to Franchisor, and its successors and |
| assigns, for the term of the Agreement and thereafter as provided in the Agreement, that |
| ("Franchisee") shall punctually pay and perform |
| each and every undertaking, agreement and covenant set forth in the Agreement; and (b) |
| agrees to be |
| personally bound by, and personally liable for the breach of, each and every provision in the Agreement, |
| both monetary obligations and obligations to take or refrain from taking specific actions or to engage or |
| refrain from engaging in specific activities, including without limitation the provisions of Sections |
| 6 and 7 |
| and Section |
| 16.D. |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations requires the undersigned to be personally bound by and liable for any breaches of the Franchise Agreement. This includes both monetary obligations and the responsibility to take or avoid specific actions or activities. The agreement specifically highlights Sections 6 and 7, as well as Section 16.D of the Franchise Agreement.
In simpler terms, if you sign this guaranty, you are promising that the 1 800 Packouts franchisee will follow all the rules and pay all required fees outlined in the Franchise Agreement. If the franchisee fails to do so, you, as the guarantor, become personally responsible for ensuring those obligations are met. This could mean paying outstanding fees or taking specific actions to correct any breaches of the agreement.
Sections 6 and 7 likely contain critical obligations, so prospective franchisees should carefully review those sections within the Franchise Agreement to fully understand the scope of the personal guarantee. Section 16.D should also be reviewed. This level of personal liability is a significant commitment and should be carefully considered with legal counsel before signing the Guaranty and Assumption of Obligations.