Is the Guaranty and Assumption of Obligations for Browns Chicken a separate document from the Franchise Agreement?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached are copies of the following documents you will sign:
Exhibit E. Preliminary Agreement Exhibit F: Franchise Agreement Rider A Territory Rider B Collateral Assignment of Lease Rider C Bank Draft Form Rider D Security Agreement and Financing Statement Rider E Guaranty and Assumption of Obligations under Franchise
Agreement
Rider F Authorization to Accountant Rider G Video Gaming
Exhibit G: Sublease and Guaranty and Assumption of Obligations under Sublease
Exhibit I: Franchisee Disclosure Questionnaire
Exhibit J: State Addendum (if applicable)
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to Browns Chicken's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations is a separate document from the Franchise Agreement. Item 22 lists the contracts that a franchisee will sign, and Exhibit E is listed as the Guaranty and Assumption of Obligations under the Franchise Agreement, while Exhibit F is the Standard Franchise Agreement.
This means that in addition to the franchise agreement, franchisees may need to have a separate guarantor sign an agreement guaranteeing the franchisee's obligations. This is a common practice when the franchisee is a corporate entity or has limited assets, ensuring that there is an individual who is personally liable for the franchise's performance.
Prospective Browns Chicken franchisees should carefully review both the Franchise Agreement and the Guaranty and Assumption of Obligations with their legal counsel to fully understand their obligations and potential liabilities. Understanding the implications of both documents is crucial before entering into a franchise agreement with Browns Chicken.