Does the Aerus guarantor waive all statutory claims against the borrower?
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 all statutory claims against the borrower. Specifically, the guarantor irrevocably and unconditionally waives all statutory, contractual, common law, equitable, and all other claims against the borrower. This waiver extends to any collateral for the guaranteed obligations or other assets of the borrower or any other obligor.
This waiver includes claims for subrogation, reimbursement, exoneration, contribution, indemnification, setoff, or other recourse related to sums paid or payable to the lender by the guarantor. Additionally, the guarantor waives any benefits they might otherwise receive due to amounts paid by or collected from the guarantor, borrower, or any other obligor upon the guaranteed obligations or realized from their property.
In practical terms, this means that if a guarantor makes payments on behalf of the borrower, they cannot then pursue the borrower for those amounts through statutory claims. This is a significant point for anyone considering acting as a guarantor, as it limits their ability to recover funds they pay out under the guarantee from the borrower using statutory rights. The guarantor's recourse against the borrower is significantly curtailed by this waiver.