Are the obligations of the individuals signing the Guaranty and Assumption of Obligations for Canine Dimensions joint, several, or both?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of, 20, by the following individuals: |
|---|
| In consideration of, and as an inducement to, the execution of that certain Franchise Agreement |
| (the "Agreement") on this date by Canine Dimensions Franchising, LLC ("us", "we", or "our"), each of the |
| undersigned personally and unconditionally (a) guarantees to us and our successors and assigns, for the |
| term of the Agreement and afterward as provided in the Agreement, that |
| ("Franchisee") will punctually pay and perform each and every undertaking, agreement and covenant set |
| forth in the Agreement and (b) agrees to be personally bound by, and personally liable for the breach of, |
| each and every provision in the Agreement, both monetary obligations and obligations to take or refrain |
| from taking specific actions or to engage or refrain from engaging in specific activities, including the non |
| competition, confidentiality and arbitration requirements. |
| Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under |
| this Guaranty will be joint and several; (2) he or she will render any payment or performance required under |
| the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be |
| contingent or conditioned upon our pursuit of any remedies against Franchisee or any other person; and (4) |
| this liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other |
| indulgence which we may from time to time grant to Franchisee or to any other person, including, without |
| limitation, the acceptance of any partial payment of performance of the compromise or release of any |
| claims, none of which will in any way modify or amend this Guaranty, which will be continuing and |
| irrevocable during the term of the Agreement. |
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the liability of each individual signing the Guaranty and Assumption of Obligations is joint and several. This means that each guarantor is individually responsible for the full amount of the franchisee's obligations under the Franchise Agreement.
In practical terms, Canine Dimensions can pursue any one or all of the guarantors for the full amount owed or the complete performance required, regardless of whether the other guarantors contribute. This provides Canine Dimensions with a stronger position, as they are not required to split their collection efforts or prove the specific responsibility of each guarantor.
For a prospective Canine Dimensions franchisee, this implies that anyone signing the Guaranty and Assumption of Obligations should fully understand the potential financial and performance obligations. They are not only guaranteeing their own actions but also the actions of the franchisee entity. Before signing, potential guarantors should carefully consider the franchisee's business plan, financial projections, and ability to meet the obligations outlined in the Franchise Agreement, as their personal assets are at risk.
This type of guarantee is common in franchising, as it provides the franchisor with added security that the franchisee will meet its obligations. Franchisees should seek legal counsel to fully understand the implications of a joint and several guarantee before signing the Franchise Agreement.