Does the Angry Chickz Continuing Guaranty extend to documents securing any of the Obligations?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
of any other obligor primarily or secondarily obligated with respect to any of the Obligations; (5) demand payment or performance of any of the Obligations from Guarantor at any time or from time to time, whether or not Franchisor shall have exercised any of its rights or remedies with respect to any property securing any of the Obligations or any obligation under this Continuing Guaranty; or (6) proceed against any other obligor primarily or secondarily liable for payment or
4. Specific Waivers.
- 4.1 Without limiting the generality of any other provision of this Continuing Guaranty, Guarantor expressly waives: (i) notice of the acceptance by Franchisor of this Continuing Guaranty; (ii) notice of the existence, creation, payment, nonpayment, performance or nonperformance of all or any of the Obligations; (iii) presentment, demand, notice of dishonor, protest, notice of protest and all other notices whatsoever with respect to the payment or performance of the Obligations or the amount thereof or any payment or performance by Guarantor under this Agreement; (iv) all diligence in collection or protection of or realization upon the Obligations or any thereof, any obligation under this Agreement or any security for or guaranty of any of the foregoing; (v) any right to direct or affect the manner or timing of Franchisor's enforcement of its rights or remedies; (vi) any and all defenses which would otherwise arise upon the occurrence of any event or contingency described in Paragraph 1 hereof or upon the taking of any action by Franchisor permitted under this Agreement; (vii) any defense, right of set-off, claim or counterclaim whatsoever and any and all other rights, benefits, protections and other defenses available to Guarantor now or at any time hereafter, including, without limitation, under any suretyship statute of the State of California or where the guarantor is domiciled;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, the Continuing Guaranty includes several specific waivers by the guarantor. Paragraph 4.1 states that the guarantor expressly waives, among other things, diligence in collection or protection of or realization upon the Obligations or any thereof, any obligation under this Agreement or any security for or guaranty of any of the foregoing. This means the guarantor is waiving rights related to the enforcement and realization of obligations, including any security for those obligations.
Additionally, Paragraph 4.3 indicates that the guarantor waives all rights to revoke the Continuing Guaranty at any time, and all rights to revoke any agreement executed by Guarantor at any time to secure the payment and performance of Guarantor's obligations under this Continuing Guaranty. This clause explicitly extends the waiver to any agreement securing the guarantor's obligations, reinforcing that the guaranty applies broadly to documents securing the obligations.
In practical terms, this means that if a prospective Angry Chickz franchisee is required to have a guarantor, that guarantor's obligations extend not only to the primary obligations but also to any documents or agreements securing those obligations. The guarantor cannot later claim that their guaranty does not apply to these related documents or attempt to revoke any agreement they signed to secure their obligations. This provides Angry Chickz with a stronger position, as the guarantor's commitment is comprehensive and covers all aspects of securing the franchisee's debt.