If Ben Jerrys demands payment from the Guarantor, what is the required action?

According to Ben Jerrys's 2025 Franchise Disclosure Document, if Ben & Jerry's demands payment from the Guarantor, the Guarantor(s) must immediately make each payment and fulfill all other monetary obligations required of the Developer under the Agreement. The Guarantor(s) also waive any right to require Ben Jerrys to first pursue the Developer for payment, security, or any other remedy. This means the Guarantor is directly responsible for the Developer's financial obligations to Ben Jerrys upon demand.

This provision is significant because it streamlines the process for Ben Jerrys to collect payments. Instead of having to go after the Developer first, Ben Jerrys can immediately seek payment from the Guarantor. This reduces the risk for Ben Jerrys, as they have an immediate recourse to collect any outstanding debts.

The Guarantor also waives certain rights, such as requiring Ben Jerrys to proceed against the Developer first or exhaust any security from the Developer. This further strengthens Ben Jerrys's position and simplifies the collection process. The Guarantor is essentially agreeing to be immediately and fully responsible for the Developer's financial obligations without any preconditions. This arrangement is common in franchising to provide the franchisor with additional financial security.