Does the All County Guaranty state that the Guarantor's liabilities and obligations are independent of the Franchisee's obligations?
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 Guaranty specifies that the Guarantor's liability is not contingent or conditional upon All County pursuing remedies against the franchisee or any other person. This means All County can seek fulfillment of the obligations directly from the guarantor without first having to exhaust all legal or collection efforts against the franchisee. This clause protects All County by ensuring they can pursue the guarantor's assets without delay if the franchisee defaults.
Furthermore, the Guaranty states that the Guarantor's liability will not be affected by any extensions of time, credit, or other allowances All County may grant to the franchisee. This provision ensures that any leniency All County extends to the franchisee does not weaken their claim against the guarantor. The Guaranty remains in effect throughout the term of the franchise agreement and beyond, and it is irrevocable, providing All County with long-term security.
Additionally, the Guarantor waives all rights to payments and claims for reimbursement or subrogation against the franchisee arising from their obligations under the Guaranty. This waiver prevents the guarantor from seeking compensation from the franchisee for any amounts they pay to All County under the Guaranty. This clause further protects All County by preventing potential disputes between the franchisee and the guarantor that could complicate the collection process.