Where in the 7 Brew franchise agreement can I find details regarding the required Guaranty?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT A-1 TO THE BREW CULTURE FRANCHISE, LLC FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
Each of the undersigned consents and agrees that: (1) his or her direct and immediate liability under this Guaranty will be joint and several, both with Franchisee and among other guarantors; (2) he or she will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against Franchisee or another person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence Franchisor may from time to time grant to Franchisee or to another person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims (including, without limitation, any release of other guarantors), none of which will in any way modify or amend this Guaranty, which will continue and be irrevocable during the term of the Agreement (including, without limitation, any extensions of its term) and afterward for so long as any performance is or might be owed under the Agreement by Franchisee or any of its owners and for so long as Franchisor has any cause of action against Franchisee or any of its owners; (5) this Guaranty will continue in full force and effect for (and as to) any extension or modification of the Agreement and despite the transfer of any interest in the Agreement or Franchisee, and each of the undersigned waives notice of any and all renewals, extensions, modifications, amendments, or transfers; and (6) any Franchisee indebtedness to the undersigned, for whatever reason, whether currently existing or hereafter
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 7 Brew Franchise Disclosure Document, Exhibit A-1 to the franchise agreement contains the Guaranty and Assumption of Obligations. This exhibit outlines the guarantor's responsibilities and liabilities, ensuring they are jointly and severally liable with the franchisee for fulfilling the agreement's terms.
The Guaranty stipulates that the guarantor must make any payment or performance required under the agreement if the franchisee fails to do so, upon demand. This obligation is not contingent on 7 Brew pursuing remedies against the franchisee or any other person. The guarantor's liability remains unaffected by any extensions of time, credit, or indulgences that 7 Brew may grant to the franchisee, including accepting partial payments or releasing claims.
The Guaranty remains in full effect even if the agreement is extended or modified, or if any interest in the agreement or franchisee is transferred. The guarantor waives notice of any renewals, extensions, modifications, amendments, or transfers. Furthermore, any debt the franchisee owes to the guarantor is subordinate to the franchisee's debt to 7 Brew or its affiliates.
Prospective franchisees and their guarantors should carefully review Exhibit A-1 to fully understand the scope and implications of the Guaranty and Assumption of Obligations, as it represents a significant financial and legal commitment.