Under the Buns On Fire Guaranty, what is the effect of the cessation of liability of any of the undersigned?

According to the 2025 Buns On Fire Franchise Disclosure Document, the cessation of liability of any of the guarantors does not relieve the other guarantors from their obligations. Specifically, if one guarantor is released from liability, the remaining guarantors are still responsible under the Guaranty, the Franchise Agreement, or any other agreements between Buns On Fire and the franchisee. This remains true unless the breach or default that triggered the guaranty has been resolved, or the money owed has been paid.

This clause protects Buns On Fire by ensuring that the obligations under the franchise agreement are met even if one or more of the guarantors are no longer liable. It means that if a franchisee defaults, Buns On Fire can pursue any or all of the guarantors to recover the owed amounts. The guarantors cannot claim that the release of one guarantor reduces their own liability, ensuring Buns On Fire has recourse to the full extent of the guarantee.

For a prospective Buns On Fire franchisee, this highlights the importance of understanding the full scope of the Guaranty and the potential liabilities involved. If multiple individuals are signing the Guaranty, each should be aware that their obligations are independent of the others, and the release of one does not diminish the responsibility of the rest. Franchisees should seek legal counsel to fully understand the implications of this clause before signing the Franchise Agreement and related documents.