Is the Guarantor's liability for an All County franchise primary or secondary to the Franchisee's?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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3.2. he will render any payment or performance required under the Agreement upon demand if
APPENDIX C
TO THE FRANCHISE AGREEMENT BETWEEN All County Property Management Franchise Corp.
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- 3.3. such liability will not be contingent or conditioned upon our pursuit of any remedies against Franchisee or any other person; and
- 3.4. such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which we may from time to time grant to Franchisee or to any other person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term of the Agreement and thereafter.
- 3.5. This Guaranty shall be binding on each Guarantor and his respective successors and assigns, and shall inure to our benefit and the benefit our successors and assigns. The Guarantor may not assign his obligations hereunder without our prior written consent.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the guarantor's liability is primary, meaning All County does not need to pursue the franchisee first before seeking fulfillment of the guarantee. The guarantor's liability is not contingent on All County first pursuing remedies against the franchisee.
Furthermore, the guarantor's liability will not be affected by any extensions of time or credit All County may grant to the franchisee. This includes accepting partial payments or compromising claims. The guaranty remains continuous and irrevocable during the term of the agreement and afterward.
The guarantor also waives all rights to payments and claims for reimbursement or subrogation against the franchisee that may arise from their performance under the guaranty. This ensures that All County can directly pursue the guarantor without the guarantor being able to seek compensation from the franchisee, which could complicate or hinder the process.