Does the Aerus guarantor waive claims against the borrower for contribution?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Guarantor hereby irrevocably and unconditionally waives and relinquishes all statutory, contractual, common law, equitable and all other claims against Borrower, any collateral for the Guaranteed Obligations or other assets of Borrower or any other Obligor, for subrogation, reimbursement, exoneration, contribution, indemnification, setoff or other recourse in respect to sums paid or payable to Lender by Guarantor hereunder and Guarantor hereby further irrevocably and unconditionally waives and relinquishes any and all other benefits which Guarantor might otherwise directly or indirectly receive or be entitled to receive by reason of any amounts paid by or collected or due from Guarantor, Borrower or any other Obligor upon the Guaranteed Obligations or realized from their property.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the guarantor does waive claims against the borrower for contribution. Specifically, the guarantor waives all statutory, contractual, common law, equitable, and other claims against the borrower. This waiver extends to claims for subrogation, reimbursement, exoneration, contribution, indemnification, setoff, or other recourse related to sums paid to the lender by the guarantor.
In practical terms, this means that if a guarantor makes payments on behalf of the borrower to Aerus Franchising, LLC, the guarantor cannot then seek contribution from the borrower for those payments. The guarantor is essentially giving up any right to recover funds from the borrower that they paid to the lender. This is a significant point for anyone considering acting as a guarantor, as it eliminates their ability to seek financial recourse from the borrower, even if the borrower is ultimately responsible for the debt.
This waiver is unconditional and irrevocable, further emphasizing the guarantor's commitment. The guarantor also relinquishes any benefits they might otherwise receive due to amounts paid by or collected from the guarantor, borrower, or any other obligor. This provision is designed to protect Aerus Franchising, LLC, by ensuring that the guarantor cannot undermine the guarantee through claims against the borrower. Prospective guarantors should fully understand this waiver and its implications before signing the guarantee agreement.