Are the principal owners' liabilities under the Augusta Lawn Care Guaranty joint or 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 Augusta Lawn Care Franchise Disclosure Document, if a franchisee is a corporation, partnership, or limited liability company, the owners or members must approve the franchise agreement and agree to certain restrictions. These restrictions include limits on transferring their interests in the franchise, limitations on their rights to compete, and a separate Guaranty, guaranteeing the franchisee's payments and performance.
The FDD states that Augusta Lawn Care may require a personal guaranty to ensure creditworthiness or to secure obligations under the Franchise Agreement. Exhibit C to the Franchise Agreement contains Augusta Lawn Care's standard form of Guaranty.
The excerpt does not specify whether the liabilities of principal owners under the Guaranty are joint or several. To clarify this, a prospective Augusta Lawn Care franchisee should review Exhibit C of the Franchise Agreement and consult with a legal professional to fully understand the implications of the Guaranty and the extent of individual liability.