Under the Buns On Fire Guaranty, what does 'the undersigned' refer to?
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.
The undersigned hereby agree, furthermore, that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder: (a) any term, covenant or condition of the Franchise Agreement may be amended, compromised, released or otherwise altered by Franchisor and Franchisee, and the undersigned do guarantee and promise to perform all the obligations of Franchisee under the Agreement as so amended, compromised, released or altered; (b) any guarantor of or party to the Franchise Agreement may be released, substituted or added; (c) any right or remedy under the Agreement, this Guaranty or any other instrument or agreement between Franchisor and Franchisee may be exercised, not exercised, impaired, modified, limited, destroyed or suspended; and, (d) Franchisor or any other person may deal in any manner with Franchisee, any of the undersigned, any party to the Franchise Agreement or any other person.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, "the undersigned" refers to each person who has executed the Guaranty. If more than one person signs the Guaranty, each person is individually and jointly liable as a surety. This means that each person is responsible for the full amount of the obligation, not just a portion of it.
Furthermore, the undersigned individually and jointly agrees to be personally bound by every term in the Franchise Agreement and any other agreements between the franchisee and Buns On Fire. This includes, but is not limited to, those in Articles XI, XIV, XVIII and XX. The guaranty is to be construed as though the undersigned executed agreements containing the identical terms and conditions of the Franchise Agreement.
The undersigned also agrees that the Franchise Agreement may be altered by Buns On Fire and the franchisee without notice to the undersigned, without affecting the obligations of the undersigned. The undersigned also agrees that Buns On Fire can deal with the franchisee or any other person in any manner without affecting the obligations of the undersigned.
This clause is significant because it means that the guarantor's obligations are not diminished even if the underlying agreement changes or if Buns On Fire takes action or inaction with respect to the franchisee. It is a broad and comprehensive guarantee that places significant risk on the guarantor.