If the 360 Painting franchisee is not an individual, who must sign the Guaranty Agreement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of, and as an inducement to, the execution by 360 Painting, LLC ("Franchisor") of that certain 360 Painting, LLC Franchise Agreement, dated (as the same from time to time may be amended, modified, extended or renewed, the "Franchise Agreement"), by and between ("Franchisee") and Franchisor, the undersigned ("Guarantor"), for the term of the Franchise Agreement and any extension or renewal thereof, and thereafter until all obligations of Franchisee to Franchisor have been satisfied, jointly and severally, do hereby personally, absolutely, and unconditionally guarantee that Franchisee shall punctually pay and perform each and every undertaking, condition, and covenant set forth in the Franchise Agreement. Guarantor further waives acceptance and notice of acceptance of the foregoing obligations of Franchisee, and any right the undersigned may have to require that an action be brought against Franchisee or any other person as a condition to the liability of Guarantor.
This Guaranty is a guarantee of payment and performance not merely one of collection. Guarantor further consents and agrees that its liability under this Guaranty shall be direct and immediate and joint and several; that Guarantor shall render any payment or performance required under the Franchise Agreement upon demand if Franchisee fails or refuses punctually to do so; that such liability shall not be contingent or conditioned upon the pursuit of any remedies against Franchisee or any other person; and that such liability shall not be diminished, relieved or otherwise affected by the extension of time, credit or any other indulgence which Franchisor, its affiliates, successors or assigns 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, or the release of any one or more Guarantors hereunder, or the consent to assignment of any interest in Franchisee, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable until all obligations of Franchisee to Franchisor have been satisfied.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 FDD, if the 360 Painting franchisee is not an individual, the Guaranty Agreement must be signed by the Guarantor. The Guarantor is guaranteeing that the Franchisee will punctually pay and perform each and every undertaking, condition, and covenant set forth in the Franchise Agreement. This obligation extends for the term of the Franchise Agreement and any extensions or renewals, continuing until all obligations of the Franchisee to 360 Painting have been satisfied.
The Guarantor waives any right to require 360 Painting to first bring an action against the Franchisee or any other person before enforcing the Guaranty. This means 360 Painting can seek recourse directly from the Guarantor without initially pursuing the Franchisee. The Guaranty is one of payment and performance, not merely collection, making the Guarantor's liability direct, immediate, and joint and several.
The Guarantor's obligations are not contingent upon 360 Painting pursuing remedies against the Franchisee. The liability of the Guarantor is not affected by any extensions of time, credit, or other indulgences that 360 Painting may grant to the Franchisee. This includes accepting partial payments or performance, compromising claims, releasing other guarantors, or consenting to assignment of interest in the Franchisee. These actions do not modify or amend the Guaranty, which remains continuing and irrevocable until all obligations of the Franchisee to 360 Painting are satisfied.