Can the amount of the guaranteed obligations be diminished by the lender regarding Aerus?

According to Aerus's 2025 Franchise Disclosure Document, the amount of the guaranteed obligations will not be diminished. The guarantor agrees that the amount of the Guaranteed Obligations shall not be diminished and the liability of Guarantor hereunder shall not be otherwise impaired or affected by any of the foregoing. The guarantor also agrees that no invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations shall affect, impair or be a defense to this Guarantee, nor shall any other circumstance which might otherwise constitute a defense available to or legal or equitable discharge of Borrower in respect of any of the Guaranteed Obligations, or Guarantor in respect of this Guarantee, affect, impair or be a defense to this Guarantee.

This means that as a prospective Aerus franchisee, if you are acting as a guarantor for a loan or other financial obligation, you cannot expect the amount you've guaranteed to be reduced. The guarantee remains in full effect regardless of any changes to the loan terms, collateral, or other factors that might typically reduce a guarantor's liability. This is a significant commitment, as it protects the lender (Aerus Franchising, LLC or its affiliates) from losses, ensuring they can pursue the full guaranteed amount from the guarantor should the borrower default.

This type of arrangement is not uncommon in franchising, where franchisors often require guarantees to secure financing provided to franchisees. However, the scope and terms of such guarantees can vary. It is crucial for a prospective Aerus franchisee to fully understand the implications of this clause, including the circumstances under which the guarantee can be invoked and the potential financial exposure. Consulting with a legal and financial advisor is highly recommended to assess the risks and ensure you are comfortable with the terms before signing any agreements.