Does the Aerus guarantor waive claims against the borrower for exoneration?
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 exoneration. Specifically, the guarantor waives all statutory, contractual, common law, equitable, and other claims against the borrower. This waiver extends to claims related to subrogation, reimbursement, exoneration, contribution, indemnification, setoff, or other recourse regarding payments made to the lender by the guarantor.
In practical terms, this means that if a guarantor makes payments to the lender on behalf of the borrower (the Aerus franchisee), the guarantor cannot then seek to recover those payments from the borrower through claims like exoneration. This is a significant point for anyone considering acting as a guarantor, as it limits their ability to recoup funds they've paid out under the guarantee.
This waiver is unconditional and irrevocable, further emphasizing the guarantor's commitment. Additionally, the guarantor waives any benefits they might otherwise receive due to payments made by the guarantor, borrower, or any other obligor on the guaranteed obligations. This comprehensive waiver is designed to protect the lender and ensure they are not subject to claims from the guarantor related to the guaranteed obligations. Prospective guarantors should fully understand these implications and seek legal counsel to assess the risks involved before signing the guarantee agreement.