Is the Angry Chickz guarantor's obligation revocable?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3 Guarantor further waives all rights to revoke this 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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the guarantor's obligations are not revocable. The FDD states that the guarantor waives all rights to revoke the Continuing Guaranty at any time. This means that once the guaranty is in place, the guarantor cannot unilaterally terminate their obligations, providing Angry Chickz with a consistent security for the franchisee's performance.
This clause protects Angry Chickz by ensuring that the guaranty remains in effect throughout the term of the franchise agreement, regardless of changes in the franchisee's circumstances or the guarantor's willingness to continue the guaranty. It also prevents the guarantor from using revocation as a means to avoid their obligations under the guaranty, which could otherwise leave Angry Chickz exposed to potential losses if the franchisee defaults.
For a prospective Angry Chickz franchisee, this means that anyone acting as a guarantor should fully understand the long-term commitment they are making. They should carefully consider the franchisee's financial stability and their own ability to cover the franchisee's obligations if necessary, as they will not be able to revoke the guaranty once it is in place. This is a standard practice in franchising, as franchisors typically seek to secure their investment and protect themselves from potential losses due to franchisee default.