Is the Aerus Guarantee continuing, unlimited, absolute and unconditional?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in any Rider attached hereto (if applicable), this Guarantee is continuing, unlimited, absolute and unconditional.
All Guaranteed Obligations shall be conclusively presumed to have been created in reliance on this Guarantee.
Guarantor shall continue to be liable hereunder until one of Lender's officers actually receives a written termination notice from Guarantor sent to Lender at its address set forth above by certified mail, return receipt requested and thereafter as set forth below.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the guarantee associated with financing arrangements between Aerus Franchising, LLC (Lender) and the franchisee (Borrower) is generally continuing, unlimited, absolute, and unconditional. This means that the guarantor's obligations are not limited by amount or time and are fully in effect unless specifically terminated. However, this is subject to the terms of any Rider attached to the guarantee agreement.
The guarantor remains liable until a written termination notice is received by one of Lender's officers via certified mail, return receipt requested, at the specified address. This ensures that Aerus has documented confirmation of the termination request. The guarantee covers all financial accommodations made by Aerus Franchising, LLC to the franchisee, as outlined in the Secured Promissory Note and other related Financing Agreements.
However, the guarantee obligation is non-recourse and only applies in specific cases: fraud or misrepresentation related to the Franchise Agreement, theft or conversion of Aerus's assets, misuse or infringement of Aerus's intellectual property, or breach of the franchise agreement concerning trademarks and intellectual property. This means that the guarantor's personal assets are protected unless one of these specific situations occurs. Prospective franchisees should carefully review the terms of the guarantee and any attached Riders to fully understand their obligations and potential liabilities.