Under the Beyond Juicery Eatery agreement, are the Guarantor's liabilities joint and several?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Consents and Agreements. Each Guarantor consents and agrees that (a) Guarantor's direct and immediate liability under this Guaranty are joint and several; (b) Guarantor must render any payment or performance required under the Franchise Agreement upon demand if the Franchisee fails or refuses punctually to do so; (c) Guarantor's liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against the Franchisee or any other person; (d) Guarantor's liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which 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 and no such indulgence shall in any way modify or amend this Guaranty; and (e) this Guaranty will continue and is irrevocable during the term of the Franchise Agreement and, if required by the Franchise Agreement, after its termination or expiration.
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the Guarantor's liabilities are joint and several. This means that each guarantor is individually and collectively responsible for the full amount of the franchisee's obligations under the Franchise Agreement. If the franchisee fails to meet its obligations, Beyond Juicery Eatery can pursue any one or all of the guarantors for the full amount owed, regardless of the number of guarantors.
This arrangement benefits Beyond Juicery Eatery by providing them with multiple avenues for recourse in case of franchisee default. It also simplifies the process of recovering debts, as they do not need to divide their efforts among multiple parties or prove the specific responsibility of each guarantor. The guarantor must render any payment or performance required under the Franchise Agreement upon demand if the Franchisee fails or refuses to do so.
For a prospective Beyond Juicery Eatery franchisee, this clause has significant implications for anyone acting as a guarantor, typically a principal owner. By signing the Guaranty, they are taking on a substantial personal financial risk. It is important for potential guarantors to fully understand the Franchise Agreement and the potential liabilities they are assuming. They should also assess the financial stability of the franchisee and the likelihood of default before agreeing to act as a guarantor.
Furthermore, the guarantor's liability is not contingent upon Beyond Juicery Eatery first pursuing remedies against the franchisee. This means Beyond Juicery Eatery can immediately seek recourse from the guarantor without having to exhaust other options. The guaranty is irrevocable during the term of the Franchise Agreement and may continue after termination or expiration if required by the Franchise Agreement.