Does the Aerus guarantor consent to the waiver of any default with respect to any 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 the waiver of any default regarding the guaranteed obligations. The guarantor waives notice of and consents to the waiver of any default with respect to any of the Guaranteed Obligations. The guarantor also agrees that the amount of the Guaranteed Obligations will not be diminished, and their liability will not be impaired by this waiver.
This means that if the borrower (typically the franchisee) defaults on their obligations, the guarantor (often a related party or owner) has already agreed to waive any right to contest or be notified of that default. This provision strengthens Aerus's position by streamlining the process of pursuing the guarantor for the debt.
For a prospective Aerus franchisee, this highlights the importance of understanding the full scope of the guarantee and the potential financial risks involved. Before signing a guarantee, it is crucial to assess the borrower's financial stability and ability to meet their obligations, as the guarantor is essentially giving up certain rights and defenses they might otherwise have in the event of a default.