Does the Amorino Personal Guaranty continue if the Franchisee declares bankruptcy?
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 personal guaranty remains in effect even if the franchisee declares bankruptcy. The guarantor's obligations are not impaired, modified, changed, released, or limited due to any bankruptcy proceedings involving the franchisee.
This means that even if the franchisee's business faces financial difficulties and declares bankruptcy, the guarantor is still responsible for fulfilling the obligations outlined in the guaranty. This includes making payments and performing duties as required by the franchise agreement. The guarantor's liability is independent of the franchisee's bankruptcy and any limitations that may arise from bankruptcy laws.
Amorino can pursue action against the guarantor, the franchisee, or both, regardless of any bankruptcy proceedings. The guarantor also waives the defense of the statute of limitations, ensuring that Amorino can pursue collection or enforcement actions even if a significant amount of time has passed. This clause protects Amorino's interests by ensuring that the personal guaranty remains a valid and enforceable obligation, regardless of the franchisee's financial status or any bankruptcy filings.