Does the Angry Chickz guaranty cover obligations arising in the future?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
on 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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Continuing Guaranty does cover future obligations. The guarantor knowingly accepts the full range of risk within the contract, including the possibility that the franchisee will contract for additional obligations and indebtedness for which the guarantor may be liable.
This means that anyone signing the Continuing Guaranty for an Angry Chickz franchise is not only guaranteeing the initial obligations but also any future debts or obligations the franchisee incurs. This is a significant commitment, as it potentially exposes the guarantor to financial risks that may arise well after the franchise agreement is signed.
Furthermore, the guarantor waives any duty on the part of Angry Chickz to disclose any facts about the franchisee's financial condition, even if those facts could materially increase the guarantor's risk. The guarantor is expected to conduct their own independent investigation of the franchisee's financial condition before signing the guaranty. This underscores the importance of thorough due diligence before agreeing to act as a guarantor for an Angry Chickz franchise.