Is the Gold Star Personal Guaranty revocable?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
This is a continuing, irrevocable, unconditional and absolute guaranty of payment and performance and the undersigned agree(s) that the undersigned's liability on this Personal Guaranty will be immediate and is not contingent upon the exercise or enforcement by Franchisor of whatever remedies it may have against Company or others, or the enforcement of any lien or realization upon any security Franchisor may at any time possess.
This Personal Guaranty remains in full force and effect until all obligations arising out of and pursuant to the Franchise Agreement and any other agreement between Franchisor and Company (including, but not limited to monetary obligations), including all renewals and extensions thereof, are fully paid and satisfied, notwithstanding the termination or expiration of the relationship set forth in the Franchise Agreement or any other agreement between Franchisor and the Company.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the Personal Guaranty is not revocable. Principals of a franchisee must execute a Personal Guaranty, and this guaranty is described as a "continuing, irrevocable, unconditional and absolute guaranty of payment and performance".
This means that the guarantor is bound to the guaranty until all obligations of the franchisee to Gold Star are fully satisfied, even if the Franchise Agreement is terminated or expires. The guaranty remains in effect as long as any monetary or other obligations are outstanding.
Prospective Gold Star franchisees should understand that this Personal Guaranty is a significant commitment. They should seek legal counsel to fully understand the implications before signing the Franchise Agreement and related documents.