What costs of collection are the guarantors responsible for under the Buns On Fire Guaranty?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
The liability of Guarantor is coextensive with that of Franchisee and also joint and several and an action or suit may be brought against Guarantor, and carried to final judgment and/or completion and recovery had, either with or without making Franchisee a party thereto. Guarantor waives any right to require that any action be brought against Franchisee. The obligations of Guarantor shall extend with any extension of the term of the Agreements and shall apply with respect to the full and faithful performance and observance of all the terms and conditions of the Agreements. Guarantor does hereby authorize and empower any attorney of any court of record of the State of Illinois or elsewhere to appear for and to enter judgment against him, in favor of Licensor for any sums due under the Agreements plus interest with costs of suit, release of errors, without stay of execution, and with reasonable attorney's fee, and Guarantor hereby waives and releases all benefit and relief from any and all appraisement, stay or exemption laws of any state now in force or hereafter to be passed. To the fullest extent permitted by law, Guarantor waives all rights to a trial by jury in any action related to this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the guarantor is liable for costs of suit and reasonable attorney's fees. Specifically, if the franchisee fails to make payments or perform according to their agreements with Buns On Fire, the guarantor promises to fulfill these obligations.
The guarantor's liability is coextensive with that of the franchisee, meaning they share the same level of responsibility. Buns On Fire can pursue legal action against the guarantor without first suing the franchisee, and the guarantor waives the right to demand that the franchisor initially target the franchisee. This obligation extends to any extensions of the franchise agreement's term, ensuring continuous coverage of the franchisee's duties.
Furthermore, the guarantor authorizes any attorney of record in Illinois or elsewhere to appear in court and enter judgment against them for any outstanding amounts, including interest, suit costs, and reasonable attorney's fees, waiving rights to relief from appraisement, stay, or exemption laws. The guarantor also waives their right to a jury trial in any action related to the guaranty, to the fullest extent permitted by law. This outlines a comprehensive set of financial responsibilities and legal waivers assumed by the guarantor under the Buns On Fire franchise agreement.