Does the Browns Chicken guarantor acknowledge that the Company does not assume any responsibility to any of the undersigned for the collectibility or enforceability of any of the Obligations?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned acknowledges and agrees that the Company has not made any representations or warranties with respect to, does not assume any responsibility to any of the undersigned for, and has no duty to provide information to any of the undersigned regarding the collectibility or enforceability of any of the Obligations or the financial condition of Franchisee or any guarantor.
Each of the undersigned has independently determined the credit worthiness of Franchisee and the collectibility and enforceability of the Obligations, and until the Obligations are paid in full each of the undersigned will independently and without reliance on the Company continue to make such determinations.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the guarantor acknowledges that Browns Chicken does not assume responsibility for the collectibility or enforceability of any obligations. Specifically, each guarantor acknowledges that Browns Chicken has not made any representations or warranties regarding, does not assume any responsibility for, and has no duty to provide information regarding the collectibility or enforceability of any of the obligations or the financial condition of the franchisee or any guarantor.
Furthermore, each guarantor must independently determine the creditworthiness of the franchisee and the collectibility and enforceability of the obligations. This determination must be made independently and without reliance on Browns Chicken, and it must continue until the obligations are paid in full.
This means that if you are considering becoming a guarantor for a Browns Chicken franchise, you are taking on significant financial risk. Browns Chicken will not provide you with any assurances about the franchisee's ability to pay or the enforceability of the obligations. It is your responsibility to conduct your own due diligence and assess the risk involved. This is a standard practice in franchising, as franchisors typically want to ensure that franchisees and their guarantors are fully responsible for their financial obligations.