According to the Aerus guarantee, can the Guarantor's liability be accelerated?

According to Aerus's 2025 Franchise Disclosure Document, the liability of the guarantor for the entire guaranteed obligations can mature and become immediately due and payable under certain conditions. Specifically, this acceleration can occur even if the liability of the borrower or any other obligor does not become immediately due. This acceleration is triggered upon the occurrence of any act, condition, or event that constitutes an Event of Default as defined in the Note.

This provision means that if the borrower defaults on their obligations under the financing agreements, Aerus can demand immediate payment from the guarantor for the full amount owed, regardless of whether the borrower's payment is immediately due. This creates a significant risk for the guarantor, as they could be required to pay the entire debt even if the borrower still has time to fulfill their obligations.

For a prospective Aerus franchisee, this highlights the importance of carefully reviewing the terms of the guarantee and understanding the circumstances that could trigger acceleration. It also underscores the need to assess the financial stability of the borrower, as the guarantor's liability is directly tied to the borrower's ability to meet their obligations. The franchisee should seek legal counsel to fully understand the implications of this acceleration clause and to evaluate the risks associated with providing a guarantee for the financing agreements.