Who is the Guaranty and Assumption of Obligations given to by the guarantor of a Browns Chicken franchise?
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 given to BROWN'S CHICKEN, LLC (the "Company"), including its successors and assigns. The guarantor ensures that the franchisee will fulfill all obligations outlined in the Franchise Agreement.
This means that if a Browns Chicken franchisee fails to meet their financial or operational responsibilities, the guarantor is legally bound to cover those obligations. This personal guarantee extends for the entire term of the Franchise Agreement and beyond, as specified in the agreement.
Specifically, the guarantor agrees to be personally liable for any breaches of the Franchise Agreement, including monetary obligations and requirements to take or avoid specific actions. This includes adherence to Sections 15, 17, and 21 of the agreement, which cover various aspects of franchise operations and responsibilities. Therefore, anyone considering becoming a guarantor for a Browns Chicken franchise should carefully review the Franchise Agreement to understand the full extent of their potential liability.