Under the Craters & Freighters guaranty, is the guarantor's liability joint and several?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the guarantor's liability is joint and several. This means that each guarantor is individually and collectively responsible for the full amount of the franchisee's obligations. Craters & Freighters can pursue any one guarantor for the entire debt, regardless of the contributions of other guarantors. This clause protects Craters & Freighters by ensuring they can recover the full amount owed without having to pursue each guarantor separately or prove their individual share of the liability.

For a prospective Craters & Freighters franchisee, this has significant implications if a personal guaranty is required. If multiple individuals act as guarantors (e.g., business partners, spouses), each guarantor is fully liable. A guarantor cannot limit their liability to a proportionate share. Craters & Freighters can seek the entire amount due from any single guarantor, leaving that guarantor to seek contribution from the others.

The FDD also states that each guarantor waives certain rights, including requiring Craters & Freighters to first pursue action against the franchisee before seeking recourse from the guarantor. The guarantor also consents to the fact that their liability will not be diminished even if Craters & Freighters grants extensions of time or credit to the franchisee. This underscores the comprehensive and unconditional nature of the guaranty, placing a significant responsibility on anyone who agrees to act as a guarantor for a Craters & Freighters franchise.