Under what conditions does the Amorino Personal Guaranty remain in effect?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor hereby consents and agrees that:
- (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;
- (e)this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and
- (f) each Guarantor waives notice of any and all renewals, extensions, modifications, amendments, or transfers;
- (g)upon our request, Guarantor must submit to Franchisor suitable credit and information to allow Franchisor to make a reasonable decision as to the Guarantor's creditworthiness and financial position including, without limitation, a personal net worth statement and such other
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 during the term of the Franchise Agreement. It continues as long as any performance is or might be owed under the agreement by the franchisee or its owners, and for as long as Amorino has any cause of action against the franchisee or its owners. The guaranty is continuing and irrevocable during the term of the agreement.
The guarantor's liability is direct, immediate, and independent of the liability of the franchisee and other owners, and is joint and several with them. The guarantor must make any payment or performance required under the agreement upon demand if the franchisee fails or refuses to do so punctually. This liability is not contingent or conditioned upon Amorino pursuing any remedies against the franchisee or any other person.
Furthermore, the liability of the guarantor is not diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence that Amorino may grant to the franchisee or any other person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims, including the release of other guarantors. The guaranty remains in effect for any extension or modification of the agreement and despite the transfer of any interest in the agreement or franchisee. Each guarantor waives notice of any and all renewals, extensions, modifications, amendments, or transfers.
Upon Amorino's request, the guarantor must submit suitable credit and information to allow Amorino to make a reasonable decision as to the guarantor's creditworthiness and financial position, including a personal net worth statement and other relevant information. This ensures that Amorino can assess the guarantor's ability to satisfy their obligations under the guaranty.