Under the Buns On Fire Guaranty, what is the significance of the undersigned being considered 'primary as sureties'?
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.
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 signs the Guaranty, each person's liability is joint and several and they are considered primary sureties. This means that each person who signs the Guaranty is fully responsible for all of the franchisee's obligations to Buns On Fire.
Being 'jointly and severally' liable means Buns On Fire can pursue any one or all of the guarantors for the full amount owed, regardless of their individual contributions to the business. The term 'primary as sureties' indicates that Buns On Fire does not need to first pursue the franchisee or any other party before seeking fulfillment of the obligations from the guarantors. The guarantors are the first line of responsibility.
This arrangement offers Buns On Fire a direct and immediate recourse to ensure all terms, conditions, and agreements within the Franchise Agreement are met. For potential Buns On Fire franchisees, this highlights the importance of understanding the full scope of the Guaranty and the potential financial and legal implications for all signatories. Each person signing the Guaranty should be fully aware that they are taking on a significant and direct responsibility for the franchisee's performance.