Under the Amorino Personal Guaranty, is the Guaranty continuing and irrevocable during the term of the Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the personal guaranty is continuing and irrevocable during the term of the agreement. The guarantor's liability is direct, immediate, and independent of the franchisee's liability, as well as joint and several with the franchisee and other owners.
This means that if the franchisee fails to meet their obligations under the franchise agreement, Amorino can immediately seek payment or performance from the guarantor without first pursuing remedies against the franchisee. The guarantor's obligations are not contingent on Amorino's actions against the franchisee or any other person.
Furthermore, the guaranty remains in effect even if Amorino grants extensions of time or credit to the franchisee, accepts partial payments, or compromises claims. The guaranty is not modified or amended by these actions and remains in place for the duration of the agreement, as long as any performance is owed by the franchisee or its owners, and as long as Amorino has any cause of action against them. The guaranty also continues if there are any extensions or modifications to the agreement or transfers of interest in the agreement or the franchisee.