Under the Pearce Bespoke Guaranty, is the liability of the guarantor direct and immediate?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned consents and agrees that:
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- the undersigned's direct and immediate liability under this Guaranty shall be joint and several with all signatories to this and similar guaranties of Franchisee's obligations;
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- the undersigned shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so;
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- this Guaranty shall apply to any claims Franchisor may have due to return of any payments or property Franchisor may have received from Franchisee as a preference, fraudulent transfer or conveyance or the like in any legal proceeding;
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- such liability shall not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other person; and
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- such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Franchisor may from time to time grant to Franchisee or 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 in any way modify or amend this Guaranty, which shall be continuing and irrevocable during and after the terms of the Franchise Documents, as the same may be amended or renewed, until Franchisee's duties and obligations to Franchisor are fully discharged and satisfied.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the guarantor's liability is indeed direct and immediate. The guarantor's obligations are outlined in the Payment and Performance Guaranty, typically required from owners of the franchisee entity.
The guarantor explicitly waives several rights, including the need for Pearce Bespoke to first demand payment from the franchisee or pursue legal action against them. This means Pearce Bespoke can seek recourse directly from the guarantor without initially targeting the franchisee.
Furthermore, the guarantor consents and agrees that their liability is joint and several with all signatories to similar guarantees. The guarantor is obligated to render payment or performance immediately upon demand if the franchisee fails to fulfill their obligations. This liability remains irrespective of any actions Pearce Bespoke might take, such as granting extensions or compromising claims with the franchisee. The guaranty remains continuing and irrevocable until the franchisee's obligations are fully discharged.