Who is the Guaranty and Assumption of Obligations under Sublease given to for Browns Chicken franchisees?
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 provided to BROWN'S CHICKEN, LLC (the "Company"). The guarantor, in consideration of Browns Chicken entering into a franchise agreement with the franchisee, personally and unconditionally guarantees to Browns Chicken that the franchisee will fulfill all obligations, agreements, and covenants set forth in the Franchise Agreement. This guarantee extends for the term of the agreement and beyond, as specified in the agreement.
Furthermore, the guarantor agrees to be personally bound by and liable for any breaches of the Franchise Agreement. This includes both monetary obligations and requirements to take or refrain from specific actions or activities, as detailed in Sections 15, 17, and 21 of the agreement. These sections outline various obligations that the franchisee must adhere to, and the guarantor ensures that these obligations are met.
In essence, this clause ensures that Browns Chicken has recourse not only to the franchisee but also to the guarantor, providing an additional layer of security that the franchisee's obligations will be fulfilled. This is a common practice in franchising, as it mitigates the risk for the franchisor by ensuring that there is a responsible party who is financially and legally committed to the success and compliance of the franchise.