If the Amorino Franchisee fails to make a payment, what is the Guarantor required to do?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a)Guarantor's liability under this undertaking shall be direct, immediate, and independent of the liability of, and shall be joint and several with, Franchisee and the other owners of Franchisee;
- (b)Guarantor shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so;
- (c)this liability will not be contingent or conditioned upon our pursuit of any remedies against Franchisee or any other person;
- (d)this liability shall not be diminished, relieved or otherwise affected by any extension of time, credit, or other indulgence which Franchisor may grant to Franchisee or to any other person, including the acceptance of any partial payment or performance, or the compromise or release of any claims (including the release of other Guarantors), none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable during the term of the Agreement, for so long as any performance is or might be owed under the Agreement by Franchisee or its owners, and for so long as Franchisor has any cause of action against Franchisee or its owners;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if the franchisee fails or refuses to make a payment punctually, the Guarantor must render any payment or performance required under the agreement upon demand. This obligation of the Guarantor is direct, immediate, and independent of the franchisee's liability, and it is joint and several with the franchisee and other owners.
This means that Amorino can demand payment directly from the Guarantor without first pursuing the franchisee. The Guarantor's liability is not contingent on Amorino pursuing remedies against the franchisee or any other person. Furthermore, the Guarantor's liability will not be affected by any extensions of time, credit, or other allowances that Amorino may grant to the franchisee.
The guaranty remains in full effect for any extensions or modifications of the agreement and despite any transfer of interest in the agreement or the franchisee. The Guarantor also waives notice of any renewals, extensions, modifications, amendments, or transfers. This ensures that Amorino has a reliable source of payment should the franchisee default, providing financial security to the franchisor.