Does the Aerus guarantor consent to modifications of the note and financing agreements?
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 the 2025 Aerus Franchise Disclosure Document, the guarantor does waive notice of and consent to modifications of the note and any of the other financing agreements. This includes any amendment, modification, supplement, extension, renewal, or restatement of the Note. It also encompasses extensions of time of payment or increases or decreases 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 so 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 Aerus makes to the financing agreements, even if those changes increase your potential liability. This waiver protects Aerus by ensuring that changes to the loan terms do not invalidate the guarantee.
As a prospective Aerus franchisee, it is important to fully understand the implications of acting as a guarantor. You should carefully review the financing agreements and consider seeking legal advice to assess the risks involved before signing any guarantee. Be aware 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.