What specific agreement is referenced in the Apricot Lane Guaranty and Assumption of Obligations?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
tive to securing the site, leasing of the site, and construction of the site and obtain all approvals of FRANCHISOR required in the Option Franchise Agreement with respect to these matters.
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- This Location Option Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof.
SIGNED BY: FRANCHISEE(S) SIGNED BY: COUNTRY VISIONS, INC.
EXHIBIT C TO COUNTRY VISIONS, INC. FRANCHISE AGREEMENT TERRITORY
EXHIBIT D TO COUNTRY VISIONS, INC. FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
In consideration of, and as an inducement to, the execution by Country Visions, Inc. ("FRANCHISOR") of that certain Franchise Agreement dated (the "Agreement") between FRANCHISOR and ("FRANCHISEE"), or in consideration of and as an inducement to FRANCHISOR's consent to a transfer as defined in Section 20.B of the Agreement, each of the undersigned parties including: ______________________________________________________________________________
("GUARANTORS") hereby jointly and severally (1) guarantee to FRANCHISOR and its successors and assigns, for the term of the Franchise Agreement and thereafter as provided in the Agreement, that FRANCHISEE shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Franchise Agreement (and any amendments) and that each a
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the Guaranty and Assumption of Obligations is directly related to the Franchise Agreement. This agreement is put in place to ensure that if the franchisee is an entity (like a corporation or LLC), the individuals behind that entity (such as partners, shareholders, or members with a 5% or greater interest) also personally guarantee the franchisee's obligations. This means these individuals are also legally bound by the terms of the Franchise Agreement.
Specifically, the Guarantors, by signing the Guaranty and Assumption of Obligations, guarantee that the franchisee will fulfill all the promises and responsibilities outlined in the Franchise Agreement, including any amendments made to it. They also confirm that all representations made by the franchisee in connection with the Franchise Agreement are accurate and complete. Furthermore, the Guarantors agree to be personally liable if the franchisee breaches any part of the Franchise Agreement.
This requirement is a standard practice in franchising, as it provides the franchisor with an additional layer of security. It ensures that there are individuals with personal assets at stake, which can motivate them to ensure the franchise operates according to the agreement. For a prospective Apricot Lane franchisee, this means that if you own the franchise through a business entity, you and any other owners with a significant stake will need to sign this Guaranty, committing your personal assets to the success and compliance of the franchise.