Does the Aplus Guaranty require Sunoco to provide notice of acceptance of the Guaranty?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
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- This Guaranty shall be construed in accordance with the laws of the Commonwealth of Pennsylvania without regard to its choice of law rules. Notice of acceptance of the Guaranty is hereby waived.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Sunoco is not required to provide notice of acceptance of the Guaranty. The FDD states that notice of acceptance of the Guaranty is waived.
This means that if a franchisee is required to have a guarantor for their obligations to Aplus, the guarantor is bound by the guaranty agreement as soon as it is signed, without Aplus needing to formally notify the guarantor that the agreement is accepted. This waiver simplifies the process for Aplus, as they do not need to take additional steps to ensure the guaranty is in effect.
For a prospective Aplus franchisee, this implies that anyone acting as a guarantor should fully understand the obligations they are undertaking, as they will be immediately bound by the terms of the guaranty upon signing. It is crucial for the guarantor to carefully review the guaranty agreement and seek legal counsel if necessary, to fully grasp the extent of their responsibilities and potential liabilities.