Does the Aerus guarantor consent to extensions of time of payment of the guaranteed obligations?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Notice of acceptance of this Guarantee, the making of loans and advances and providing other financial accommodations to Borrower and presentment, demand, protest, notice
of protest, notice of nonpayment or default and all other notices to which Borrower or Guarantor is entitled are hereby waived by Guarantor. Guarantor also waives notice of and hereby consents to, (iii) any amendment, modification, supplement, extension, renewal, or restatement of the Note and any of the other Financing Agreements, including, without limitation, extensions of time of payment of or increase or decrease in the amount of any of the Guaranteed Obligations, interest rate, fees, other charges, or any collateral, and the guarantee made herein shall apply to the Note and the other Financing Agreements and the Guaranteed Obligations as so amended, modified, supplemented, renewed, restated or extended, increased or decreased, (iv) the taking, exchange, surrender and releasing of collateral or guarantees now or at any time held by or available to Lender for the obligations of Borrower or any other party at any time liable on or in respect of the Guaranteed Obligations or who is the owner of any property which is security for the Guaranteed Obligations (individually, an "Obligor" and collectively, the "Obligors"), (v) the exercise of, or refraining from the exercise of any rights against Borrower or any other Obligor or any collateral and (vi) the settlement, compromise or release of, or the waiver of any default with respect to, any of the Guaranteed Obligations. 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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the guarantor consents to extensions of time for payment of the guaranteed obligations. The guarantor waives notice of and consents to any amendment, modification, supplement, extension, or renewal of the Note and any of the other Financing Agreements. This includes extensions of time of payment of or increase or decrease in the amount of any of the Guaranteed Obligations, interest rate, fees, other charges, or any collateral. The guarantee applies to the Note and the other Financing Agreements and the Guaranteed Obligations as amended, modified, supplemented, renewed, restated, or extended, increased, or decreased.
This means that as a guarantor, you are agreeing to be bound by any changes to the loan terms, including extensions of payment deadlines or changes to the amount owed. This could potentially increase the risk to the guarantor if the borrower's ability to repay the debt is further compromised by these changes. The guarantor's obligations will not be diminished or otherwise impaired by any of these changes.
This is a significant commitment, as the guarantor's liability remains even if the terms of the loan are altered. A prospective Aerus franchisee acting as a guarantor should carefully consider the potential implications of these waivers and consents, as they could be held responsible for a potentially larger or longer-term debt than originally anticipated. It is advisable to seek legal counsel to fully understand the scope of these obligations before signing the guarantee.