Does abandonment of the Amorino Agreement by a trustee of the Franchisee affect the Guarantor's obligations?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h)this Guarantor will continue unchanged by the occurrence of any bankruptcy with respect to Franchisee or any assignee or successor of Franchisee or by any abandonment of the Agreement by a trustee of Franchisee. Neither Guarantor's obligations to make payment or render performance in accordance with the terms of this undertaking nor any remedy for enforcement shall be impaired, modified, changed, released or limited in any manner whatsoever by any impairment, modification, change, release or limitation of the liability of Franchisee or its estate in bankruptcy or of any remedy for enforcement, resulting from the operation of any present or future provision of the U.S. Bankruptcy Act or other statute, or from the decision of any court or agency;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the obligations of the Guarantor remain unchanged even if the Amorino Agreement is abandoned by a trustee of the franchisee. The guarantor's duty to make payments or fulfill performance terms will not be affected by any bankruptcy involving the franchisee or any abandonment of the agreement by a trustee of the franchisee. This means that even if the franchisee declares bankruptcy or a trustee abandons the agreement, the guarantor is still responsible for fulfilling their obligations as outlined in the guaranty.
The guarantor's obligations to Amorino are not lessened or released due to any changes or limitations in the franchisee's liability resulting from bankruptcy laws or court decisions. Amorino retains the right to pursue action against the guarantor, the franchisee, or multiple guarantors jointly or individually, without first having to pursue action against the franchisee. The guarantor also waives any defense related to the statute of limitations in any action taken under the guaranty for collecting debt or enforcing obligations.
Furthermore, the guarantor is responsible for covering all reasonable attorney's fees, costs, and expenses incurred by Amorino in any effort to collect amounts due under the guaranty or to enforce the guaranty against the guarantor. The guarantor is also bound by the restrictive covenants, confidentiality provisions, post-termination obligations, and indemnification provisions included in the original franchise agreement. This ensures that Amorino's interests are protected even in situations where the franchisee faces financial difficulties or abandons the agreement.