Under the Advanced Mobile Iv And Amiv Guaranty, who benefits from the Guaranty agreement?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
| THIS OWNER'S GUARANTY ("Guaranty") is made as of the, by | ||
|---|---|---|
| (each and if more than one, "Guarantor"), who have an interest in, | ||
| a ("Franchisee") in connection with that certain Advanced Mobile IV Franchise | ||
| Agreement dated as of | (the "Franchise Agreement") between Franchisee and | |
| ADVANCED MOBILE IV, LLC, a Utah limited liability company ("Franchisor"). This Guaranty is hereby | ||
| incorporated in and made a part of the Franchise Agreement and shall be annexed thereto. All terms not | ||
| defined herein shall have the meaning provided in the Franchise Agreement. |
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to the 2023 Advanced Mobile Iv And Amiv Franchise Disclosure Document, the Owner's Guaranty is established to benefit Advanced Mobile IV, LLC, the franchisor. The Guaranty is made by each guarantor who has an interest in the franchisee. This agreement is incorporated into and made part of the Franchise Agreement.
In essence, the Guaranty ensures that the franchisor has recourse to the personal assets of the franchisee's owners or stakeholders should the franchisee default on their obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of financial security.
For a prospective Advanced Mobile Iv And Amiv franchisee, this means that if you have an ownership stake in the franchise, you will likely be required to sign a personal guarantee, making you personally liable for the franchise's debts and obligations to Advanced Mobile Iv And Amiv. It is important to carefully consider the implications of signing such a guarantee and to seek legal advice if necessary.