Under the Bombs Away Guaranty, when must the Guarantor render payment or performance?

According to Bombs Away's 2024 Franchise Disclosure Document, a Guarantor must render any payment or performance required under the Franchise Agreement or any other agreement between the franchisee and Bombs Away Franchising upon demand from Bombs Away Franchising. This means that if the franchisee fails to meet their financial or operational obligations, the guarantor is responsible for fulfilling those obligations immediately upon Bombs Away's request.

This arrangement protects Bombs Away by ensuring that there is another party responsible for the franchisee's obligations. The guarantor's responsibilities extend to all undertakings, agreements, and covenants outlined in the Franchise Agreement, as well as any other liabilities the franchisee has to Bombs Away Franchising.

The guarantor also waives several rights, including the right to receive notices of acceptance of the guaranty, demands for payment, or default. They also waive the right to require Bombs Away to first pursue action against the franchisee before demanding payment or performance from the guarantor. This waiver strengthens Bombs Away's position by allowing them to seek recourse directly from the guarantor without delay.

Prospective franchisees should carefully consider the implications of the Guaranty and Non-Compete Agreement, especially if they are relying on a guarantor to secure the franchise. The guarantor should be fully aware of the financial and operational obligations they are undertaking, as they become immediately responsible for the franchisee's debts and performance upon Bombs Away's demand.