Does the Angry Chickz Continuing Guaranty cover obligations that are contingent?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor knowingly accepts the full range of risk encompassed within a contract of "Continuing Guaranty" which includes, without limitation, the possibility that Franchisee will contract for additional obligations and indebtedness for which Guarantor may be liable hereunder.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Continuing Guaranty agreement includes a provision that addresses contingent obligations. Specifically, the guarantor acknowledges that the franchisee may contract for additional obligations and indebtedness. The guarantor accepts the possibility that they may be liable for these future obligations.
This means a guarantor for an Angry Chickz franchise acknowledges potential liability for future debts or obligations the franchisee takes on. This could include loans, leases, or other financial commitments the franchisee enters into during the franchise term. The guarantor's responsibility isn't limited to the initial obligations but extends to these additional liabilities.
For a prospective Angry Chickz franchisee, this highlights the importance of carefully considering the scope of the Continuing Guaranty. Potential guarantors should understand they are not only guaranteeing the initial franchise obligations but also potentially any future financial commitments of the franchisee. It would be prudent for the guarantor to conduct thorough due diligence on the franchisee's financial management capabilities and future business plans.