Does the Angry Chickz guarantor's obligation extend to the Franchisor's affiliates?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
0 | J | | | 18.11 | Counterparts Fees and Expenses | . 58 | | | REPRESENTATIONS AND WARRANTIES BY FRANCHISEE | . 58 | | 19.1 | Representations and Warranties. | . 58 |
FRANCHISE AGREEMENT
| THIS FRANCHISE AGREEMENT ("Agreement") is made this day of , 20 ("Effective Date") by and between Angry Chickz Franchising LLC, a California limited liability company ("Company"), and , a(n) ("Franchisee"). |
|---|
| RECITALS |
| A. |
| Company and/or its Affiliates have developed (and may continue to develop and |
| modify) a system for the operation of restaurants operated under the Marks (as defined below) that |
| feature boneless, breaded chicken (e.g., "Nashville Hot Chicken"), fries, macaroni and cheese, |
| coleslaw, rice and other authorized food, beverages and novelty items and services (individually, |
| a "Restaurant" and collectively, the "Restaurants"). |
| B. |
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document, the provided excerpts do not explicitly state whether the guarantor's obligations extend to the Franchisor's affiliates. However, the FDD does state that "Company and/or its Affiliates have developed (and may continue to develop and modify) a system for the operation of restaurants operated under the Marks (as defined below)." This suggests that Angry Chickz's affiliates are involved in the franchise system. Also, the agreement states that "This Continuing Guaranty shall inure to the benefit of Franchisor and its successors and assigns." This means that the agreement benefits Angry Chickz and whoever Angry Chickz assigns the agreement to.
Because the FDD excerpts do not provide a definitive answer regarding the guarantor's obligations to affiliates, prospective franchisees should seek clarification from Angry Chickz. Specifically, they should ask whether the obligations outlined in the Continuing Guaranty extend not only to Angry Chickz Franchising LLC but also to any of its affiliated entities.
Understanding the scope of the guaranty is crucial for the guarantor, as it determines the extent of their financial responsibility. If the guaranty extends to affiliates, the guarantor's liability could potentially increase depending on the actions and obligations of those affiliates. Therefore, it is essential to have a clear understanding of this aspect before signing the Continuing Guaranty.