Under the Craters & Freighters guaranty, is the liability of the guarantors joint, several, or both?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the liability of each guarantor under the guaranty is joint and several. This means that each guarantor is individually liable for the full amount of the franchisee's obligations, as well as collectively liable with the other guarantors. Craters & Freighters can pursue any one guarantor for the entire debt, regardless of whether other guarantors exist or their ability to pay.

This type of liability offers significant protection to Craters & Freighters, as it simplifies the process of recovering any losses resulting from a franchisee's default. The franchisor does not need to pursue all guarantors simultaneously or divide the debt among them. They can target the guarantor with the most accessible assets to satisfy the entire obligation.

For potential Craters & Freighters franchisees, this clause highlights the importance of understanding the full extent of the personal guarantee. Individuals signing as guarantors should be fully aware that they are taking on substantial financial risk, potentially up to the total amount of the franchisee's debt. They should also consider seeking legal counsel to fully understand the implications of joint and several liability before signing the Franchise Agreement.