What sections of the Crawlspace Medic Franchise Agreement contain the Guaranteed Obligations that the Guarantor is responsible for?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor acknowledges that Guarantor is the spouse of Franchisee's Principal, as that term is used in the Franchise Agreement.
Guarantor acknowledges that Guarantor has read the terms and conditions of the Franchise Agreement and acknowledges that the execution of this Guaranty are in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement to Franchisee, and that Franchisor would not have granted these rights without the execution of this Guaranty by Guarantor.
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the monetary obligations and non-competition covenants and agreements of the Franchisee as set forth in the Franchise Agreement, including but not limited to, the covenants set forth in Sections 19.2, 19.5, 19.6, 19.8 and 19.9 of the Franchise Agreement ("Guaranteed Obligations"). Guarantor shall perform and/or make punctual payment to Franchisor of the Guaranteed Obligations in accordance with the terms of the Franchise Agreement or other applicable document forthwith upon demand by Franchisor.
This Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. This Guaranty shall not be discharged by renewal of any claims guaranteed by this instrument, change in ownership or control of the Franchisee entity, transfer of the Franchise Agreement, the suffering of any indulgence to any debtor, extension of time of payment thereof, nor the discharge of Franchisee by bankruptcy, o
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the guarantor is responsible for the monetary obligations and non-competition covenants outlined in specific sections of the Franchise Agreement. These sections, which define the "Guaranteed Obligations," are 19.2, 19.5, 19.6, 19.8, and 19.9. The guarantor must fulfill these obligations according to the terms of the Franchise Agreement upon demand from Crawlspace Medic.
The guarantor's acknowledgement is a critical component of the agreement, confirming they have reviewed the Franchise Agreement's terms and that their guarantee is a condition for granting rights to the franchisee. Crawlspace Medic would not grant these rights without the guarantor's commitment.
This guarantee is absolute, unconditional, and continuous, covering both payment and performance of the Guaranteed Obligations. It remains in effect regardless of renewals, changes in ownership, transfers of the Franchise Agreement, or any leniency shown to the debtor. Even bankruptcy of the franchisee does not discharge the guarantor's responsibilities.