Under the Buns On Fire Guaranty, is the liability of the undersigned joint or individual?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
If more than one person has executed this Guaranty, the term "the undersigned", as used herein, shall refer to each such person, and the liability of each of the undersigned hereunder shall be joint and several and primary as sureties.
The undersigned, individually and jointly, hereby agree to be personally bound by each and every covenant, term, condition, agreement and undertaking contained and set forth in said Franchise Agreement and any other agreement(s) by and between Franchisee and Franchisor, including but not limited to those in Articles XI, XIV, XVIII and XX and agree that this Guaranty shall be construed as though the undersigned and each of them executed agreement(s) containing the identical terms and conditions of the Franchise Agreement and any other agreement(s) by and between Franchisee and Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, if more than one person executes the Guaranty, the liability of each person is joint and several, and primary as sureties. This means that each person who signs the Guaranty is fully responsible for the entire obligation, not just a portion of it. Buns On Fire can pursue any one or all of the guarantors for the full amount owed.
This type of liability is significant for prospective franchisees because it means that if multiple individuals are guaranteeing the obligations (for example, business partners or family members), each person is taking on the risk of the entire debt. If one guarantor is unable to pay, Buns On Fire can seek the full amount from the other guarantors. This is a common practice in franchising, as it provides the franchisor with greater security.
Furthermore, the Guaranty specifies that the undersigned agree to be personally bound by all terms of the Franchise Agreement and any other agreements between the franchisee and franchisor. This includes being bound as if they had each executed the agreements themselves. This ensures that the guarantors are fully aware of and responsible for all obligations outlined in the Franchise Agreement, not just the financial ones. Prospective franchisees should carefully consider the implications of this joint and several liability before signing the Guaranty.