Under the Aerus Principal Guaranty, what does the guarantor unconditionally and irrevocably guarantee to Aerus and its successors?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
As an inducement to Company to execute the Franchisee Agreement to which this Principal Guaranty (this "Guaranty") is attached, the undersigned jointly and severally agree to be bound by all the terms and conditions of the above Franchisee Agreement, including any amendments or modifications thereto whenever made (the "Agreement") and unconditionally and irrevocably guarantee to Company and its successors and assigns that all of the obligations of Franchisee under the Agreement will be punctually paid and performed.
Upon default by Franchisee or notice from Company, the undersigned will immediately make each payment and perform each obligation required of Franchisee under the Agreement. Without affecting the obligations of the undersigned under this Guaranty, Company may, without notice to the undersigned, renew, extend, modify, amend or release any indebtedness or obligation of Franchisee, or settle, adjust or compromise any claims against Franchisee.
The undersigned hereby waives all demands and notices of every kind with respect to this Guaranty and the Agreement, including, without limitation, notice of the amendment or modification of this Guaranty or the Agreement, the demand for payment or performance by Franchisee, any default by Franchisee or any guarantor, and any release of any guarantor or other security for the Agreement or the obligations of Franchisee.
Company may pursue its rights against the undersigned without first exhausting its remedies against Franchisee or any guarantor and without joining any other guarantor hereto and no delay on the part of Company in the exercise of any right or remedy shall operate as a waiver of such right or remedy, and no single or partial exercise by Company of any right or remedy shall preclude the further exercise of such right or remedy.
Upon receipt by Company of notice of the death of an individual guarantor, the estate of such guarantor will be bound by this Guaranty but only for defaults and obligations hereunder existing at the time of death, and the obligations of the other guarantors hereunder will continue in full force and effect.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Principal Guaranty requires the guarantor to unconditionally and irrevocably guarantee to Aerus and its successors that all obligations of the franchisee under the Franchise Agreement will be punctually paid and performed. This includes any amendments or modifications to the agreement.
Upon default by the franchisee or notice from Aerus, the guarantor must immediately make each payment and perform each obligation required of the franchisee under the agreement. Aerus can renew, extend, modify, amend, or release any debt or obligation of the franchisee, or settle or compromise claims against the franchisee, without affecting the guarantor's obligations. The guarantor waives all demands and notices, including those related to amendments or modifications of the guaranty or agreement, demands for payment or performance by the franchisee, any default by the franchisee or any guarantor, and any release of any guarantor or other security for the agreement or the franchisee's obligations.
Aerus can pursue its rights against the guarantor without first exhausting remedies against the franchisee or any other guarantor, and without joining any other guarantor. No delay by Aerus in exercising any right or remedy acts as a waiver, and no single or partial exercise of any right or remedy prevents further exercise of that right or remedy. If a guarantor dies, their estate remains bound by the guaranty for defaults and obligations existing at the time of death, while the obligations of other guarantors continue in full force.