Under the Aerus guarantee, can successive actions be brought against the guarantor?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
One or more successive or concurrent actions may be brought hereon against Guarantor either in the same action in which Borrower or any other Obligor is sued or in separate actions.
In the event any claim or action, or action on any judgment, based on this Guarantee is brought against Guarantor, Guarantor agrees not to deduct, set-off, or seek any counterclaim for or recoup any amounts which are or may be owed by Lender to Guarantor.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, one or more successive or concurrent actions may be brought against the guarantor. These actions can occur in the same legal proceeding as the borrower or in separate, individual actions. This means that Aerus has the right to pursue the guarantor in court multiple times, either alongside the borrower or independently, to ensure the guaranteed obligations are fulfilled.
This provision protects Aerus by allowing them to pursue all available avenues for recovering debts. It also stipulates that the guarantor cannot deduct, set-off, or seek any counterclaim against Aerus in any claim or action related to the guarantee. This ensures that the guarantor's obligations are met without delay or hindrance from potential disputes or counterclaims.
For a prospective Aerus franchisee, this clause highlights the importance of understanding the full extent of any guarantee they provide. It is crucial to recognize that the guarantee is not a one-time obligation, and Aerus can pursue multiple legal actions if necessary to recover the guaranteed amounts. Franchisees should seek legal counsel to fully understand the implications of this provision before signing any guarantee agreements.