Is the liability of guarantors under the Augusta Lawn Care Guaranty joint and several?
Augusta_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
If You are a corporation, all officers and shareholders, or, if You are a partnership, all Your general partners, or, if You are a limited liability company, all Your members, shall approve this Agreement, permit You to furnish the financial information required by Augusta Lawn Care , and agree to the restrictions placed on them including restrictions on the transferability of their interests in the franchise and the Augusta Lawn Care Business and limitations on their rights to compete, and sign separately a Guaranty, guaranteeing Your payments and performance. Where required to satisfy our standards of creditworthiness, or to secure the obligations made under this Agreement, You may be asked to sign the Guaranty. Our form of Guaranty appears as Exhibit C to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 44–184)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, if an Augusta Lawn Care franchisee is a corporation, partnership, or limited liability company, all officers and shareholders, general partners, or members must sign a Guaranty. This Guaranty ensures the franchisee's payments and performance under the franchise agreement. The FDD does not specify whether the liability under this Guaranty is joint and several.
This means the document does not explicitly state whether each guarantor is individually liable for the entire debt or obligation, or whether they are only liable for a portion of it. Joint and several liability would allow Augusta Lawn Care to pursue any one of the guarantors for the full amount owed, regardless of the contributions of the other guarantors.
A prospective Augusta Lawn Care franchisee should seek clarification from the franchisor regarding the nature of the liability under the Guaranty. Understanding whether the liability is joint and several is crucial for assessing the potential financial risk associated with signing the Guaranty. It is also advisable to consult with a legal professional to fully understand the implications of the Guaranty before signing the franchise agreement.