Is the Guaranty and Assumption of Obligations for Browns Chicken conditional?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
poses.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the date first above written.
| Secured Party: | Debtor: |
|---|---|
| Brown's Chicken, LLC | |
| an Illinois limited liability company | |
| By: | By: |
| Title: | Title: |
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Rider E to Franchise Agreement
GUARANTY AND ASSUMPTION OF OBLIGATIONS DESIGNATION OF AUTHORIZED REPRESENTATIVE
| 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; |
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 generally unconditional. The agreement states that the guarantor personally and unconditionally guarantees the company that the franchisee will fulfill every obligation, agreement, and covenant set forth in the Franchise Agreement for the term of the agreement. This includes monetary obligations and obligations to take or refrain from taking specific actions.
However, Rider D indicates a conditional consent by Browns Chicken for a franchisee to offer Video Gaming at the franchisee's store. This consent is specifically tied to the terms and conditions outlined in Rider D, suggesting that certain activities or offerings might be subject to conditional agreements within the broader franchise framework.
While the standard Guaranty and Assumption of Obligations appears to be unconditional, franchisees should carefully review all riders and attachments to their Franchise Agreement to identify any specific conditions or limitations that may apply to certain aspects of their franchise operations, such as the introduction of new services like Video Gaming.