Does the personal guaranty for a Deer Solution franchise survive the termination or expiration of the Franchise Agreement?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee to us pursuant to the terms of the Ancillary Agreements.
You waive: (a) acceptance and notice of acceptance by us of the foregoing undertakings; (b) notice of demand for payment of any indebtedness guaranteed; (c) protest and notice of default to any party with respect to the indebtedness guaranteed; (d) any right you may have to require that an action be brought against Franchisee or any other person as a condition of liability; and (e) the defense of the statute of limitations in any action hereunder or for the collection of any indebtedness hereby guaranteed.
You agree that: (a) your direct and immediate liability under this guaranty shall be joint and several with Franchisee and all other signatories to this Agreement; (b) you will render any payment required under the Franchise Agreement and the Ancillary Agreements upon demand if Franchisee fails or refuses punctually to do so; (c) your liability shall not be contingent or conditioned upon pursuit by us of any remedies against Franchisee or any other person; and (d) liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence that we may grant to Franchisee or to any other person, including the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this guarantee, which shall be continuing and irrevocable during the term of each of the Franchise Agreement and the Ancillary Agreements and following the termination, expiration or Transfer of each of the Franchise Agreement and the Ancillary Agreements to the extent any financial obligations under any such Franchise Agreement and Ancillary Agreements survive such termination, expiration or Transfer. This guaranty will continue unchanged by the occurrence of any bankruptcy with respect to Franchisee or any assignee or successor of Franchisee or by any abandonment of one or more of the Franchis
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the personal guaranty signed by the franchisee and their spouse extends beyond the termination or expiration of the Franchise Agreement. Specifically, the guaranty remains in effect to the extent that any financial obligations under the Franchise Agreement and related ancillary agreements survive such termination or expiration. This means that even after the franchise agreement ends, the personal guarantors are still liable for any outstanding financial responsibilities.
The document outlines that the guarantor's liability is direct, immediate, and joint and several with the franchisee. This implies that Deer Solution can pursue the guarantor directly without first exhausting remedies against the franchisee. The guarantor's obligations are not contingent upon Deer Solution pursuing other remedies, and the liability remains unaffected by any extensions of time or credit granted to the franchisee.
Furthermore, the guaranty is designed to be continuing and irrevocable, meaning it remains in place regardless of events such as bankruptcy of the franchisee. The guarantor's obligation to make payments and Deer Solution's ability to enforce the guaranty are not impaired by any changes or limitations to the franchisee's liability, even in cases of bankruptcy. This ensures that Deer Solution retains its financial protection throughout the term of the agreement and even after its termination, as long as financial obligations remain.