Is the guarantor's liability under the Guaranty for All Dogs Unleashed joint, several, or both?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
5. Guarantor agrees that:
- (a) Guarantor's liability under this undertaking is direct, immediate, and independent of the liability of, and is joint and several with, Developer and the other parties who may be held liable for Developer's performance of the ADA;
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to the 2025 All Dogs Unleashed Franchise Disclosure Document, the guarantor's liability is both joint and several. This means that the guarantor is fully responsible for the obligations of the developer under the agreement. All Dogs Unleashed can pursue the guarantor directly, jointly with the developer, or separately, to ensure the obligations are met.
Specifically, the FDD states that the guarantor's liability is direct, immediate, and independent of the developer's liability. This reinforces that All Dogs Unleashed does not need to first pursue action against the developer before seeking fulfillment of the obligations from the guarantor. The guarantor has waived any right to require All Dogs Unleashed to first bring an action against the developer.
This arrangement provides All Dogs Unleashed with a stronger assurance that the obligations under the franchise agreement will be fulfilled, as they have multiple avenues for recourse. For a potential guarantor, this signifies a significant responsibility, as they can be held fully accountable for the developer's performance without preconditions. It is advisable for the guarantor to fully understand the obligations they are guaranteeing and the potential financial and legal implications.