Is the liability of the undersigned under the Floyds 99 Guaranty direct and immediate?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that:
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- His or her direct and immediate liability under this guaranty shall be joint and several;
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- He or she shall render any payment or performance required under the Agreement upon demand if Developer fails or refuses punctually to do so;
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- This liability shall not be contingent or conditioned upon pursuit by Franchisor or its affiliates of any remedies against Developer or any other person;
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- He or she will be bound by the covenant not to compete and other restrictive covenants, the confidentiality provisions, the audit provisions, and the indemnification provisions contained in the Agreement;
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- This liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Franchisor or its affiliates may from time to time grant to Developer or to any other person; including, without limitation, 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 guaranty, which shall be continuing and irrevocable during the term of the Agreement, including renewals thereof; and
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the liability of the undersigned under the guaranty is direct and immediate. Specifically, the document states that the liability under the guaranty is joint and several. This means that each person signing the guaranty is fully responsible for the entire debt or obligation. Floyds 99 can pursue any one or all of the guarantors to fulfill the obligation.
Furthermore, the guarantor is required to make any payment or performance required under the agreement upon demand if the developer fails or refuses to do so punctually. This obligation is not contingent upon Floyds 99 pursuing any remedies against the developer or any other person. This means Floyds 99 does not have to first attempt to collect from the primary debtor before seeking fulfillment from the guarantor.
In addition, the liability of the guarantor is not diminished or affected by any extensions of time, credit, or other indulgences that Floyds 99 may grant to the developer. This includes accepting partial payments or compromising claims. The guaranty remains continuing and irrevocable during the term of the agreement, including any renewals. The guarantor's obligations also extend to the covenant not to compete, confidentiality provisions, audit provisions, and indemnification provisions contained in the agreement.