What deductions or withholdings are prohibited from payments made by the guarantor to the lender for Aerus guaranteed obligations?

According to Aerus's 2025 Franchise Disclosure Document, the guarantor must make all payments to the lender on the guaranteed obligations without any deductions or withholdings. These prohibited deductions include any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees, deductions, withholding, restrictions, or conditions of any kind. This requirement ensures that the lender receives the full amount of the guaranteed obligations without any reductions.

This provision is significant for a prospective Aerus franchisee because it clarifies the financial responsibilities of a guarantor. If a franchisee requires a guarantor for their financing, the guarantor must be aware that they cannot reduce their payments to the lender for any reason, such as offsetting amounts they believe the lender owes them. This could impact the guarantor's financial planning and obligations.

The guarantor's obligation to make payments free and clear of any deductions is a standard practice in financial agreements to protect the lender's interests. This clause aims to streamline the payment process and avoid disputes over deductions or withholdings, ensuring the lender receives the full guaranteed amount promptly. The guarantor should fully understand this obligation before entering into the guarantee agreement.