Does the Aerus guarantor waive claims against the borrower for indemnification?
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 irrevocably and unconditionally waives all claims against the borrower for indemnification. This waiver extends to statutory, contractual, common law, equitable, and all other claims against the borrower, any collateral securing the guaranteed obligations, or other assets of the borrower. The waiver specifically includes claims for subrogation, reimbursement, exoneration, contribution, setoff, or other recourse related to payments made or payable to the lender by the guarantor.
This means that if a guarantor makes payments on behalf of the borrower to Aerus Franchising, LLC, the guarantor cannot seek compensation or reimbursement from the borrower for those payments. This waiver also applies to any benefits the guarantor might otherwise receive due to amounts paid by or collected from the guarantor, borrower, or any other obligor on the guaranteed obligations, or realized from their property.
This provision protects Aerus by preventing the guarantor from later seeking to recover funds from the borrower that the guarantor paid to Aerus. It also simplifies the financial relationship between Aerus, the borrower, and the guarantor by clarifying that the guarantor bears the ultimate responsibility for the guaranteed obligations without recourse against the borrower. Prospective franchisees acting as guarantors should fully understand this waiver, as it eliminates their ability to seek indemnification from the borrower, potentially increasing their financial risk.