Where can I find the Guaranty within the Exit Franchise Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
SCHEDULE 4 GUARANTY AND AGREEMENT TO BE BOUND BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT
For good and valuable consideration, the undersigned, for themselves, their heirs, successors, and assigns, do jointly, individually and severally ("Guarantor" whether one or more) guarantee payment of all amounts and the performance of the covenants, terms and conditions in the Franchise Agreement dated [insert date from page 1]________________, _______, by and between [insert information from page 1] as Subfranchisor ("Subfranchisor") and [insert information from page 1] as Franchisee ("Franchisee") (the "Franchise Agreement"), to be paid, kept and performed by Franchisee.
Guarantor agrees to be bound by each and every condition and term contained in the Franchise Agreement and agree that this Guaranty should be construed as though the undersigned and each of them executed an Agreement containing the identical terms and conditions of the Franchise Agreement, including, but not limited to, the covenant not to compete provisions contained in Section 21 of the Franchise Agreement.
Guarantor guarantees payment of all amounts due EXIT or any of its subsidiaries or affiliates.
The provisions, covenants, and conditions of this Guaranty will inure to the benefit of the successors and assigns of Franchisor.
Guarantor's obligations under this Guaranty shall be binding upon Guarantor and its respective successors and assigns and shall remain in full force and effect irrespective of:
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Guaranty is found in Schedule 4 of the Franchise Agreement. Schedule 4 is titled "GUARANTY AND AGREEMENT TO BE BOUND BY THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT."
The Guaranty stipulates that the guarantor(s) agree to guarantee payment of all amounts and the performance of the covenants, terms, and conditions in the Franchise Agreement. This includes agreeing to be bound by each term and condition within the Franchise Agreement, such as the covenant not to compete outlined in Section 21.
The Guaranty extends to all amounts due to Exit or any of its subsidiaries or affiliates. It remains in full effect regardless of the validity or enforceability of the Franchise Agreement, any failure in collecting amounts due, or any amendments made to the agreement. The subfranchisor is not obligated to seek payment from the franchisee or any other party before enforcing the Guaranty.
Furthermore, the guarantor is responsible for covering all legal and other costs incurred by Exit and its affiliates in their efforts to collect amounts due under the Franchise Agreement or to enforce any right under the Franchise Agreement or the Guaranty itself. This Guaranty serves as a guaranty of performance and payment, not merely a guaranty of collection, emphasizing the comprehensive nature of the guarantor's obligations.