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

According to the 2025 Buns On Fire Franchise Disclosure Document, the cessation of or release from liability of any of the undersigned guarantors does not automatically relieve any other guarantors from their obligations. This holds true under the Guaranty, the Franchise Agreement, or any other agreements between Buns On Fire and the franchisee. The only exception to this is if the breach or default that triggered the guaranty has been resolved, or if the money owed has been paid.

In practical terms, this means that if multiple individuals or entities have signed a guaranty for a Buns On Fire franchise, the release of one guarantor for any reason (such as settlement, bankruptcy, or other legal reasons) does not absolve the remaining guarantors of their responsibility to fulfill the financial obligations of the franchise. Buns On Fire retains the right to pursue the remaining guarantors for the full amount owed, regardless of the release of another party.

This clause protects Buns On Fire by ensuring that there are multiple layers of financial security for the franchise agreement. Prospective franchisees should carefully consider the implications of signing a guaranty, especially if there are multiple guarantors involved. It is essential to understand that the release of one guarantor does not diminish the liability of the others unless the underlying debt or breach is fully resolved. Franchisees should seek legal counsel to fully understand the scope and implications of the guaranty before signing.