To what agreements does the Casa De Corazon Guaranty apply?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
IN CONSIDERATION of the grant by CASA FRANCHISING, LLC ("Franchisor") of Casa de Corazon development rights to the party named as Developer ("Developer") in the Development Agreement to which this Guaranty is attached (the "Development Agreement"), and for other good and valuable consideration, receipt of which is hereby acknowledged, the undersigned hereby guarantee (jointly and severally with one another and all other guarantors of Developer, whether such guaranties are entered into prior to or after the date hereof) to Franchisor and to Franchisor's successors and assigns: (a) the payment of all costs and fees required to be paid to Franchisor or its affiliates by Developer under the Development Agreement, and (b) the performance by Developer of all its obligations under the Development Agreement. The undersigned further specifically agree to be individually bound by all covenants, obligations, and commitments of Developer contained in the Development Agreement to the same extent as if each of the undersigned had individually been named as Developer in the Development Agreement, and the undersigned had individually executed the Development Agreement.
Source: Item 23 — RECEIPTS (FDD pages 51–215)
What This Means (2025 FDD)
According to the 2025 Casa De Corazon Franchise Disclosure Document, the Guaranty applies to the Development Agreement. Specifically, the guarantor agrees to ensure the Developer pays all required costs and fees to Casa De Corazon under the Development Agreement. The guarantor also ensures the Developer fulfills all obligations outlined in the Development Agreement.
Furthermore, the guarantor agrees to be individually bound by all the covenants, obligations, and commitments of the Developer as if the guarantor were the Developer themselves and had individually executed the Development Agreement. This means the guarantor takes on the same responsibilities and liabilities as the Developer under the Development Agreement.
In practical terms, this Guaranty means that Casa De Corazon seeks assurance that the financial and operational obligations of the Development Agreement will be met. If the Developer fails to pay or perform as required, Casa De Corazon can pursue the guarantor directly to enforce the terms of the Development Agreement. This is a common practice in franchising to provide the franchisor with additional security.