Where should payments by the guarantor be made to the lender under the Aerus guarantee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Payment by Guarantor shall be made to Lender at the office of Lender from time to time on demand as Guaranteed Obligations become due.
Guarantor shall make all payments to Lender on the Guaranteed Obligations free and clear of, and without deduction or withholding for or on account of, any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees, deductions, withholding, restrictions or conditions of any kind.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, when a guarantor is required to make payments under the guarantee, those payments must be made to the lender. The payments should be made at the lender's office, with the specific location determined by the lender and communicated to the guarantor. These payments are due on demand as the guaranteed obligations become due.
The guarantor is responsible for ensuring that all payments are made free and clear of any deductions or withholdings for items such as setoffs, counterclaims, duties, taxes, or other restrictions. This means the guarantor must cover any such additional costs to ensure the lender receives the full amount of the obligation.
The agreement also specifies that the lender is not obligated to attempt to collect from the borrower or any other party before requiring payment from the guarantor. The lender has the right to demand immediate payment from the guarantor when the obligations are due, whether due to maturity, acceleration, or any other reason. This highlights the guarantor's primary and immediate responsibility for the debt.