Under the Bananas Smoothies Frozen Yogurt guaranty, is the liability of the undersigned direct and immediate?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (i) his/her direct and immediate liability under this guaranty shall be joint and several; (ii) he/she shall render any payment or performance required under the Franchise Agreement upon demand if Franchisee fails or refuses punctually to do so; (iii) such liability shall not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other person; and (iv) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which the Franchisor 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 Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, the liability of the undersigned under the guaranty is direct and immediate. Each individual signing the guaranty agrees that their liability is both direct and immediate, as well as joint and several. This means that each guarantor is fully responsible for the obligations, and Bananas Smoothies Frozen Yogurt can pursue any or all guarantors to fulfill the obligations.
Furthermore, the guarantor is required to fulfill any payment or performance obligations outlined in the relevant agreement (Franchise Agreement, Sublease, etc.) immediately upon demand if the franchisee or sublessee fails to do so punctually. This obligation is not contingent on Bananas Smoothies Frozen Yogurt first pursuing other remedies against the franchisee or any other party.
The guaranty remains in effect and is irrevocable during the term of the Franchise Agreement. The liability of the guarantor will not be affected by any extensions of time, credit, or other allowances that Bananas Smoothies Frozen Yogurt may grant to the franchisee. This includes accepting partial payments or compromising on claims, none of which will modify or amend the guaranty. This ensures that the guaranty remains a solid commitment regardless of any leniency the franchisor might extend to the franchisee.