In the Browns Chicken Guaranty and Assumption of Obligations, what must each undersigned individual agree to regarding judicial enforcement and injunctive relief?
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 Browns Chicken's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations requires each undersigned individual to agree to be personally bound by and liable for every provision in the Franchise Agreement. This includes both monetary obligations and obligations to take or refrain from specific actions or activities.
Specifically, the agreement covers provisions outlined in Sections 15, 17, and 21 of the Franchise Agreement, which are collectively referred to as the "Obligations." This means that guarantors are not only ensuring the franchisee's financial performance but also their adherence to operational standards, non-compete clauses, and other key contractual requirements.
This requirement has significant implications for anyone signing the Guaranty, as they are taking on personal responsibility for the franchisee's compliance with the entire agreement. Potential guarantors should carefully review the Franchise Agreement, especially Sections 15, 17, and 21, to fully understand the scope of their obligations and potential liabilities. They should also consider seeking legal counsel to assess the risks involved before signing the Guaranty and Assumption of Obligations.