Who pays the costs of enforcing the Fly To Fit Guaranty?

According to Fly To Fit's 2024 Franchise Disclosure Document, the Guarantor is responsible for covering all costs incurred by Fly To Fit in enforcing the Guaranty, including reasonable attorney fees. The Guaranty is a separate agreement signed by an individual (the Guarantor) who owns an equity interest in the Franchisee, ensuring the Franchisee fulfills all obligations to Fly To Fit. This obligation extends to every undertaking, agreement, and covenant outlined in the Franchise Agreement, as well as any other liabilities the Franchisee owes to Fly To Fit.

This means that if Fly To Fit has to take legal action to enforce the Guaranty because the Franchisee has defaulted on their obligations, the Guarantor will be required to pay all of Fly To Fit's associated costs, including legal fees. This provision is designed to protect Fly To Fit from financial losses resulting from a defaulting Franchisee, by shifting the financial burden of enforcement to the Guarantor.

For a prospective Fly To Fit franchisee, this highlights the importance of understanding the Guaranty and the financial responsibilities it entails for the Guarantor. If multiple Guarantors sign the Guaranty, each has joint and several liability, meaning each Guarantor is individually liable for the full amount of the debt. This could have significant financial implications for the Guarantor, so it is important to fully understand the terms of the Guaranty and the potential risks involved.