What is the purpose of the Guaranty Agreement for a 360 Painting franchise?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------------------------------------------------------------------------------------------------------------------| | | ◻ ◻ ◻ ◻ | sole proprietorship; partnership; corporation; or limited liability company. | | | | 2. | | If Franchisee is not a sole proprietor, (including other entities) holding any ownership interest in Franchisee: | | list of all partners, members or shareholders or others | | | | Name and address | % interest | Active in Operation of Business? (yes/no) | | (a) | | | | | | (b) | | | | | | (c) | | | | | | 3. | general partners: (a) (b) (c) | Name | Title | If Franchisee is not a sole proprietor, list of Franchisee's officers, directors, managers and/or | | | | The undersigned certifies that all information contained in this Exhibit C-5 required to be disclosed in this Exhibit C-5. | FRANCHISEE: By: Name: Title: | is accurate and complete, and agrees to notify Franchisor promptly (and in any case within 15 days) upon any change in the information [Name of Entity or Individual] |
TO FRANCHISE AGREEMENT
GUARANTY AGREEMENT
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, the Guaranty Agreement ensures that the franchisee will fulfill all obligations outlined in the 360 Painting Franchise Agreement. The guarantor, by signing the agreement, personally and unconditionally guarantees that the franchisee will punctually pay and perform every requirement detailed in the Franchise Agreement. This obligation extends for the entire term of the agreement, including any extensions or renewals, and continues until all the franchisee's debts to 360 Painting are fully satisfied.
The guarantor also waives any rights to require 360 Painting to first pursue action against the franchisee or any other party before seeking fulfillment of the guarantee. This means 360 Painting can directly seek payment or performance from the guarantor if the franchisee fails to meet their obligations. The guarantor's liability is direct, immediate, and joint and several, meaning they are equally responsible alongside the franchisee.
The agreement specifies that the guarantor's obligations are not contingent on 360 Painting pursuing remedies against the franchisee. Furthermore, the guarantor's liability remains unaffected even if 360 Painting grants extensions of time, credit, or other indulgences to the franchisee. This includes accepting partial payments, compromising claims, releasing other guarantors, or consenting to assignment of interest in the franchisee. None of these actions will modify or amend the Guaranty, which remains continuing and irrevocable until all the franchisee's obligations to 360 Painting are met.
Premium Service Brands, LLC, executes a guarantee of performance, ensuring that 360 Painting, LLC fulfills its obligations under its franchise registration and franchise agreements in Virginia. This guarantee remains in effect until all obligations of 360 Painting, LLC are satisfied, and Premium Service Brands, LLC remains liable even if a claim against 360 Painting, LLC is outstanding. Notice of acceptance is waived, but notice of default on the part of 360 Painting, LLC is not waived. This guarantee binds Premium Service Brands, LLC, and its successors and assigns.