What is the effective date of the Browns Chicken Guaranty and Assumption of Obligations?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of , 20, by |
|---|
| of |
| 1. |
| In consideration of, and to induce BROWN'S CHICKEN, LLC (the "Company") to enter |
| into a franchise agreement dated, 20 (the "Franchise Agreement"), with |
| ("Franchisee"), each of the undersigned hereby |
| personally and unconditionally (a) guarantees to the Company, and its successors and assigns, |
| for the term of the Agreement and thereafter as provided in the Agreement, that the Franchisee |
| shall 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, |
| including without limitation the provisions of Sections 15, 17, and 21 (all of which shall be |
| referred to as the "Obligations"). |
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, the Guaranty and Assumption of Obligations is effective as of the day it is given. The specific date is to be filled in on the line that reads "THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of , 20, by".
This agreement is made to induce Browns Chicken, LLC to enter into a franchise agreement with the franchisee. The guarantor agrees to personally and unconditionally guarantee that the franchisee will fulfill all obligations set forth in the Franchise Agreement, including monetary obligations and specific actions or inactions outlined in Sections 15, 17, and 21 of the agreement.
In essence, this means that if the franchisee fails to meet their obligations under the Franchise Agreement, the guarantor is personally liable for those obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and assurance that the franchisee will uphold their commitments.