What information about the franchisee is collected in the table within the Aw Guaranty and Assumption of Obligations?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of , 20, by |
|---|
| In consideration of, and as an inducement to, the execution of that certain Franchise |
| Agreement of even date herewith (the "Agreement") by Rayyan Pizza Franchise LLC (the |
| "Company"), each of the undersigned hereby personally and unconditionally, jointly and severally: |
| (a) guarantees to the Company, and its successors and assigns, for the term of the Agreement and |
| thereafter |
| as |
| provided |
| in |
| the |
| Agreement, |
| that |
| ("Franchisee") will punctually |
| pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; |
| and (b) agrees to be personally bound by, and personally liable for the breach of, each and every |
| provision in the Agreement, both monetary obligations and obligations to take or refrain from taking |
| specific actions or to engage or refrain from engaging in specific activities. |
RPF FA 2025
or if Franchisee is an entity: A By: Its:
EXHIBIT 2 TO THE FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
Each of the undersigned waives: (1) acceptance and notice of acceptance by the Company of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or non-performance of any obligations hereby guaranteed; (4) any right he may have to require that an action be brought against Franchisee or any other person as a condition of liability; and (5) any and all other notices and legal or equitable defenses to which he may be entitled.
Each of the undersigned consents and agrees that: (1) his direct and immediate liability under this Guaranty will be joint and several with all other current and future guarantors of Franchisee's obligations; (2) he will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) such liability will not be contingent or conditioned upon pursuit by the Company of any remedies against Franchisee or any Other person; (4) such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which the Company may from time to time grant to Franchisee or to any Other person, including without limitation, the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Agreement; and (5) this Guarantee shall apply to any amounts recovered from Company as a preference, fraudulent transfer or otherwise in a bankruptcy or similar proceeding.
IN WITNESS WHEREOF, each of the undersigned has hereunto affixed his signature on the same day and year as the Agreement was executed.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations collects information related to the franchisee's commitment to uphold the Franchise Agreement. The table indicates that the guarantor(s) agree to ensure the franchisee fulfills all obligations outlined in the agreement, including financial and operational responsibilities. This means that the personal assets of the guarantor(s) are at risk should the franchisee fail to meet their obligations.
The document specifies that the guarantor(s) waive certain rights, such as requiring Aw to first pursue action against the franchisee before seeking recourse from the guarantor(s). They also consent to joint and several liability with other guarantors and agree that their liability won't be affected by any extensions or indulgences Aw grants to the franchisee. This highlights the comprehensive and unconditional nature of the guarantee.
For a prospective Aw franchisee, this means that anyone signing the Guaranty and Assumption of Obligations must fully understand the extent of their financial and legal exposure. They are essentially vouching for the franchisee's ability to adhere to the Franchise Agreement and are willing to be held personally liable if the franchisee defaults. This is a standard practice in franchising, as it provides the franchisor with an additional layer of security and assurance that the franchisee will be fully committed to the business.
The document also requires the guarantor to affix their signature, signifying their agreement to the terms outlined. If the franchisee is an entity, the document requires a signature by an authorized representative, specifying their title. This ensures that the franchisor has a legally binding agreement with the franchisee and the guarantor(s), which is crucial for protecting the franchisor's interests and maintaining the integrity of the franchise system.