Does the revocation or termination by the Guarantor affect Guaranteed Obligations created before the receipt of the written notice by the Lender for Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Revocation or termination hereof by Guarantor shall not affect, in any manner, the rights of Lender or any obligations or duties of Guarantor under this Guarantee with respect to (i) Guaranteed Obligations which have been created, contracted, assumed or incurred prior to the receipt by Lender of such written notice of revocation or termination as provided herein, including, without limitation, (ii) all amendments, extensions, renewals and modifications of such Guaranteed Obligations (whether or not evidenced by new or additional agreements, documents or instruments executed on or after such notice of revocation or termination), (iii) all interest, fees and similar charges accruing or due on and after revocation or termination, and (iv) all attorneys' fees and legal expenses, costs and other expenses paid or incurred on or after such notice of revocation or termination in attempting to collect or enforce any of the Guaranteed Obligations against Borrower, Guarantor or any other Obligor (whether or not suit be brought), or (v) Guaranteed Obligations which have been created, contracted, assumed or incurred after the receipt by Lender of such written notice of revocation or termination as provided herein pursuant to any contract entered into by Lender prior to receipt of such notice.
The sole effect of such revocation or termination by Guarantor shall be to exclude from this Guarantee the liability of Guarantor for those Guaranteed Obligations arising after the date of receipt by Lender of such written notice which are unrelated to Guaranteed Obligations arising or transactions entered into prior to such date.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the revocation or termination by the Guarantor does not affect the rights of the Lender or any obligations of the Guarantor regarding Guaranteed Obligations created, contracted, assumed, or incurred before the Lender receives written notice of revocation or termination. This includes any amendments, extensions, renewals, and modifications of these Guaranteed Obligations, regardless of whether new agreements are executed after the notice of revocation.
Furthermore, the Guarantor remains responsible for all interest, fees, and similar charges accruing or due after the revocation or termination notice. They are also liable for all attorneys' fees, legal expenses, costs, and other expenses paid or incurred after such notice while attempting to collect or enforce any of the Guaranteed Obligations against the Borrower, Guarantor, or any other Obligor. This also applies to Guaranteed Obligations created after the Lender receives the termination notice, if those obligations arise from any contract the Lender entered into before receiving the notice.
In simpler terms, if you, as the Guarantor, try to terminate your guarantee, it only applies to new Guaranteed Obligations that arise after the Lender has received your written termination notice. You remain responsible for all existing obligations and any costs associated with them, even after attempting to revoke the guarantee. The only effect of such revocation or termination by Guarantor is to exclude from this Guarantee the liability of Guarantor for those Guaranteed Obligations arising after the date of receipt by Lender of such written notice which are unrelated to Guaranteed Obligations arising or transactions entered into prior to such date.