Is the Aerus lender required to make representations to the guarantor about the borrower?

According to Aerus's 2025 Franchise Disclosure Document, the lender does not make any representations to the guarantor regarding the borrower. The document states that the guarantor acknowledges that Aerus, as the lender, has not made any representations about the borrower or any other obligor in connection with the guarantee. Furthermore, the guarantor confirms they are not relying on Aerus or any statements made by Aerus concerning the guarantee.

This means that if a prospective Aerus franchisee requires a guarantor for financing, that guarantor should conduct their own independent assessment of the franchisee's financial situation and business plan. The guarantor cannot rely on any information or assurances from Aerus regarding the franchisee's ability to repay the loan.

This lack of representation from Aerus places the full burden of due diligence on the guarantor. It is crucial for potential guarantors to understand this and to seek independent financial and legal advice before agreeing to guarantee a franchisee's obligations. This clause protects Aerus from potential claims by the guarantor based on any alleged misrepresentations about the franchisee's financial health or business prospects.