Is the Bb.Q Chicken Spouse Guaranty discharged by the Franchisee's bankruptcy?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor acknowledges that Guarantor is the spouse of Franchisee's Principal, as that term is used in the Franchise Agreement.
Guarantor acknowledges that Guarantor has read the terms and conditions of the Franchise Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement to Franchisee, and that Franchisor would not have granted these rights without the execution of this Guaranty by Guarantor.
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the monetary obligations and non-competition covenants and agreements of the Franchisee as set forth in the Franchise Agreement, including but not limited to, the covenants set forth in Article 10 of the Franchise Agreement ("Guaranteed Obligations"). Guarantor shall perform and/or make punctual payment to Franchisor of the Guaranteed Obligations in accordance with the terms of the Franchise Agreement or other applicable document forthwith upon demand by Franchisor.
This Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. This Guaranty shall not be discharged by renewal of any obligations guaranteed by this instrument, change in ownership or control of the Franchisee entity, transfer of the Franchise Agreement, the suffering of any indulgence to any debtor, extension of time of payment thereof, nor the discharge of Franchisee by bankruptcy, operation of law or otherwise. Presentment, demand, protest, notice of protest and dishonor, notice of default or nonpayment and diligence in collecting any obligation under any agreement between Franchisee and Franchisor are each and all waived by Guarantor and/or acknowledged as inapplicable. Guarantor waives notice of amendment of any agreement between Franchisee and Franchisor and notice of demand for payment by Franchisee. Guarantor further agrees to be bound by any and all amendments and changes to any agreement between Franchisee and Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to the 2025 Bb.Q Chicken Franchise Disclosure Document, the Spouse Guaranty is not discharged by the Franchisee's bankruptcy. The guarantor, typically the spouse of the franchisee's principal, acknowledges reading the Franchise Agreement's terms and conditions. Their execution of the Guaranty is a condition for Bb.Q Chicken granting rights in the Franchise Agreement to the franchisee. Bb.Q Chicken would not grant these rights without the Guaranty.
The guarantor agrees to be bound by and perform all monetary obligations and non-competition covenants of the franchisee, as outlined in the Franchise Agreement. This includes the covenants in Article 10 of the Franchise Agreement, referred to as "Guaranteed Obligations." The guarantor must make punctual payments to Bb.Q Chicken upon demand, following the terms of the Franchise Agreement.
The Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. It is not discharged by several events, including the renewal of any guaranteed obligations, changes in the franchisee's ownership or control, transfer of the Franchise Agreement, any leniency shown to any debtor, extensions of payment timelines, or the franchisee's discharge through bankruptcy, operation of law, or other means. The guarantor waives their right to presentment, demand, protest, notice of protest and dishonor, notice of default or nonpayment, and diligence in collecting any obligation. The guarantor also waives notice of any amendments to agreements between the franchisee and Bb.Q Chicken and agrees to be bound by such changes.