In the Bb.Q Chicken Spouse Guaranty, who is the Guarantor identified as being the spouse of?
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 Bb.Q Chicken's 2025 Franchise Disclosure Document, the Guarantor in the Spouse Guaranty is identified as the spouse of the Franchisee's Principal. This means that if the franchisee is a business entity (like a corporation or LLC), the spouse of the person who controls that entity (the 'Principal') must sign a guarantee.
This spousal guarantee is a common practice in franchising. By signing the guarantee, the spouse agrees to be personally responsible for the financial and non-compete obligations of the franchisee as outlined in the Franchise Agreement. This ensures that Bb.Q Chicken has recourse to the personal assets of both the franchisee and their spouse if the franchise fails to meet its obligations.
The document emphasizes that Bb.Q Chicken would not grant the franchise rights without the spouse's execution of the Guaranty. This highlights the importance Bb.Q Chicken places on securing this guarantee. The Guaranty is also described as an absolute and unconditional continuing guaranty, meaning it remains in effect even if the Franchise Agreement is renewed, the ownership of the franchise changes, or the franchisee declares bankruptcy. This provides Bb.Q Chicken with a strong layer of protection.
Furthermore, the Guarantor waives certain legal notices and rights, such as notice of default or nonpayment, and agrees to be bound by any amendments to the Franchise Agreement. This further strengthens Bb.Q Chicken's position and limits the Guarantor's ability to challenge the guarantee. Prospective franchisees and their spouses should carefully review the Franchise Agreement and the Guaranty with legal counsel to fully understand the obligations and potential risks involved.