Under the Card My Yard Guaranty, is the liability of the guarantors joint and several?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Unless otherwise agreed in writing by us, you must cause each of your Owners to execute the Guaranty and Assumption Agreement attached as Exhibit A to this Agreement, jointly and severally guaranteeing your performance under this Agreement and otherwise binding themselves to the terms of this Agreement as stated therein.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if the franchisee is a corporation, partnership, limited liability company, or other legal entity, Card My Yard requires each of the franchisee's owners to execute a Guaranty and Assumption Agreement.
Under this agreement, the owners jointly and severally guarantee the franchisee's performance under the Franchise Agreement. This means that each owner is individually liable for the franchisee's obligations, as well as collectively liable as a group.
In practical terms, Card My Yard can pursue any one or all of the owners for the full amount of any debt or obligation the franchisee owes. This provides Card My Yard with a greater degree of financial security, as they are not limited to pursuing only the franchisee entity itself.