Under the Bambu guaranty, is the guarantor's liability joint and several?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that:
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- His or her direct and immediate liability under this guaranty shall be joint and several;
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- He or she shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so;
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- Such liability shall not be contingent or conditioned upon pursuit by Bambu of any remedies against Franchisee or any other person; and
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- Such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Bambu may from time to time grant to Franchisee or to any other person, including without limitation the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement, including successor franchise terms.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the guarantor's liability under the guaranty is joint and several. This means that each guarantor is individually and collectively responsible for the full amount of the franchisee's obligations. Bambu can pursue any one guarantor for the entire debt, regardless of whether other guarantors exist or what their individual contributions might be.
This provision protects Bambu by ensuring they can recover the full amount owed, even if one guarantor is unable to pay. It also simplifies the collection process, as Bambu doesn't have to pursue each guarantor separately or allocate responsibility among them. The guarantor's liability is not contingent on Bambu first pursuing the franchisee or any other person.
For a prospective Bambu franchisee, this highlights the significant responsibility assumed by anyone acting as a guarantor. Before signing a guaranty, individuals should carefully consider the franchisee's financial stability and ability to meet their obligations. They should also understand that their personal assets are at risk if the franchisee defaults, and Bambu can pursue them directly for the full amount owed without first seeking recourse from the franchisee.