Can Beverly Anns Cookie sue the guarantor alone to collect the Debt?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
I am unconditionally liable under this Guaranty, regardless of whether or not you pursue any of your remedies against the Borrower, against any other maker, surety, guarantor or endorser of the Debt or against any Property.
You may sue me alone, or anyone else who is obligated on this Guaranty, or any number of us together, to collect the Debt.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the franchisor has the right to sue the guarantor alone to collect debt. The FDD states that the guarantor is unconditionally liable, regardless of whether the franchisor pursues remedies against the borrower or any other party obligated on the debt.
This means that Mobile Cookie Company, LLC can seek to recover the debt directly from the guarantor without first attempting to collect from the franchisee (borrower) or any other guarantors. This clause protects the franchisor by providing a direct avenue for debt recovery.
For a prospective Beverly Anns Cookie franchisee, this highlights the importance of understanding the full extent of any personal guarantee they may be required to provide. The franchisee should be aware that they are giving Beverly Ann's Cookie the ability to pursue them directly for the full debt, even if other avenues of recovery exist. It is advisable to seek legal counsel to fully understand the implications of such a guarantee before signing any agreements.