Under the Illinois 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 ("Guarantor"), a limited liability company organized under the laws of the State of Delaware and located at 126 Garrett Street, Suite J, Charlottesville, VA 22902, absolutely and unconditionally guarantees to assume the duties and obligations of 360 Painting, LLC, 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 on its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, Premium Service Brands, LLC, as the Guarantor, provides an absolute and unconditional guarantee to assume the duties and obligations of 360 Painting under its franchise registration in Illinois and under the Franchise Agreement. This guarantee is valid as identified in the 2025 Franchise Disclosure Document, including any amendments or modifications to the Franchise Agreement.
The guarantee remains in effect until all obligations of 360 Painting under its franchise registrations and the Franchise Agreement are fully satisfied. Alternatively, the guarantee continues until the liability of 360 Painting to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
Importantly, the guarantee specifies that Premium Service Brands, LLC is not released from liability if a franchisee has an outstanding claim against 360 Painting. This ensures that the guarantee remains enforceable even if there are unresolved disputes between the franchisee and 360 Painting. The guarantor has waived the notice of acceptance but does not waive receipt of notice of default on the part of the franchisor. This guarantee is binding on the Guarantor and on its successors and assigns.