Under the Batteries Plus Bulbs agreement, is the Guarantor's liability direct or indirect?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Each Guarantor consents and agrees that:
(1) Guarantor's liability under this undertaking will be direct and independent of the liability of, and will be joint and several with, Multiple Unit Franchisee and the other Guarantors of Multiple Unit Franchisee;
(2) Guarantor will make any payment or perform any obligation required under the Agreements upon demand if Multiple Unit Franchisee fails to do so;
(3) Guarantor's liability hereunder will not be diminished or relieved by bankruptcy, insolvency or reorganization of Multiple Unit Franchisee or any assignee or successor;
(4) Guarantor's liability will not be diminished, relieved or otherwise affected by any extension of time or credit which Franchisor may grant to Multiple Unit Franchisee, including the acceptance of any partial payment or performance, or the compromise or release of any claims;
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs Franchise Disclosure Document, the Guarantor's liability is direct and independent of the liability of the Multiple Unit Franchisee. The Guarantor's liability is also joint and several with the Multiple Unit Franchisee and other Guarantors. This means that Batteries Plus Bulbs can pursue the Guarantor directly for any obligations without first having to pursue the Multiple Unit Franchisee.
The Guarantor must make any payment or perform any obligation required under the Agreements upon demand if the Multiple Unit Franchisee fails to do so. The Guarantor's liability will not be diminished or relieved by the bankruptcy, insolvency, or reorganization of the Multiple Unit Franchisee, or any assignee or successor.
Furthermore, the Guarantor's liability will not be diminished, relieved, or otherwise affected by any extension of time or credit that Batteries Plus Bulbs may grant to the Multiple Unit Franchisee, including the acceptance of any partial payment or performance, or the compromise or release of any claims. This underscores the comprehensive and unconditional nature of the guarantee, ensuring that Batteries Plus Bulbs has recourse to the Guarantor under a wide range of circumstances.