Under the FTC guarantee, under what conditions does the guarantee of 360 Painting's obligations continue?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Premium Service Brands, LLC, a Delaware limited liability corporation located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties and obligations of 360 Painting, LLC, a limited liability corporation located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Premium Service Brands, LLC guarantees 360 Painting's obligations under its franchise registration and Franchise Agreement. This guarantee remains in effect until all obligations of 360 Painting under these agreements are satisfied, or until 360 Painting's liability to its franchisees is completely discharged, whichever comes first.
Importantly, Premium Service Brands, LLC is not released from liability if a franchisee has an outstanding claim against 360 Painting. This means that even if other obligations are met, the guarantee remains active as long as there are unresolved claims from franchisees.
This guarantee is binding on Premium Service Brands, LLC, as well as its successors and assigns. Notice of acceptance of the guarantee is waived, but Premium Service Brands, LLC does not waive the right to receive notice of default on the part of 360 Painting. This ensures that Premium Service Brands, LLC is informed if 360 Painting fails to meet its obligations.