Does the Angry Chickz guarantor's obligation extend to obligations that are contingent?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor represents and warrants that it is fully aware of the financial condition of Franchisee, and Guarantor delivers this Continuing Guaranty based solely upon its own independent investigation of Franchisee's financial condition.
Guarantor waives any duty on the part of Franchisor to disclose to Guarantor any facts it may now or hereafter know about Franchisee, regardless of whether Franchisor has reason to believe that any such facts materially increase the risk beyond that which Guarantor intends to assume or has reason to believe that such facts are unknown to Guarantor.
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 guarantor knowingly accepts the full range of risk within the contract of the Continuing Guaranty. This includes the possibility that the franchisee will contract for additional obligations and indebtedness for which the guarantor may be liable.
Specifically, the guarantor represents that they are fully aware of the financial condition of the franchisee and are delivering the Continuing Guaranty based on their own independent investigation. The guarantor also waives any duty on the part of Angry Chickz to disclose any facts about the franchisee, even if those facts materially increase the risk beyond what the guarantor intends to assume.
In essence, the guarantor's obligations extend to potential future debts and obligations of the franchisee. This means a prospective Angry Chickz franchisee should ensure their guarantor fully understands the scope of this commitment and has independently assessed the franchisee's financial stability.