Who pays the costs incurred by Fly To Fit Franchise in enforcing the 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 contract signed by a person or persons (the "Guarantor") who own an equity interest in the Franchisee. The Guarantor is guaranteeing that the Franchisee will meet all obligations to Fly To Fit.

This means that if Fly To Fit has to take legal action to enforce the Guaranty agreement, the Guarantor will be responsible for paying Fly To Fit's legal expenses. This could include attorney fees, court costs, and other related expenses. This provision is designed to protect Fly To Fit's financial interests in the event that the Guarantor does not fulfill their obligations under the Guaranty.

For a prospective Fly To Fit franchisee, this highlights the importance of understanding the full scope of the Guaranty and the potential financial risks involved. If a franchisee defaults on their obligations, the guarantor will not only be responsible for the original debt but also any legal costs Fly To Fit incurs while pursuing enforcement. If multiple Guarantors sign the Guaranty, each will have joint and several liability.