What sections of the agreement does the Guarantor agree to be personally bound by in the Carls Jr. agreement?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantors hereby personally and unconditionally guarantee to CJR and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement or at law or in equity, that each will be personally bound by the restrictions contained in Section 12 of the Agreement.
Guarantors hereby: (A) guarantee to CJR and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement or at law or in equity, that Developer and any assignee of Developer's interest under the Agreement shall (1) punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and (2) punctually pay all other monies owed to CJR and/or its affiliates; (B) agree to be personally bound by each and every provision in the Agreement, including, without limitation, the provisions of Sections 12 and 16; and (C) agree to be personally liable for the breach of each and every provision in the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the Guarantors agree to be personally bound by certain obligations within the agreement. Specifically, the Guarantors personally and unconditionally guarantee to CJR (Carls Jr. Restaurants LLC) that they will be bound by the restrictions outlined in Section 12 of the agreement, for the term of the agreement and thereafter as provided in the agreement or at law or in equity.
Additionally, the Guarantors guarantee that the Developer and any assignee will punctually pay and perform every undertaking, agreement, and covenant in the agreement, and will punctually pay all other monies owed to CJR and/or its affiliates. The Guarantors also agree to be personally bound by every provision in the agreement, including Sections 12 and 16, and agree to be personally liable for any breach of these provisions.
In practical terms, this means that if the franchisee (Developer) fails to meet their financial or operational obligations under the Franchise Agreement, the Guarantor(s) will be held personally responsible for fulfilling those obligations. This could include paying outstanding debts, adhering to operational standards, and complying with any other terms outlined in the agreement. The guarantor's liability extends throughout the term of the agreement and potentially beyond, as specified in the agreement or by law.