Does the Casa De Corazon Guaranty apply to renewals of the agreements?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guaranty shall be a continuing Guaranty and may not be revoked without the prior written consent of Franchisor. This Guaranty shall apply to all agreements referenced in this Guaranty, to the renewal of all such agreements, and to any successor agreements thereto.
Source: Item 23 — RECEIPTS (FDD pages 51–215)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the Guaranty applies to the renewal of all agreements referenced in the Guaranty and to any successor agreements. This means that the personal guarantee provided by the franchisee remains in effect not only for the initial term of the franchise agreement but also for any renewals of that agreement.
This provision ensures that Casa De Corazon maintains continuous financial security throughout the entire relationship with the franchisee. The personal guarantee covers the payment of all costs and fees owed to Casa De Corazon and the franchisee's performance of all obligations under the Development Agreement. This includes any modifications, waivers, extensions, or forbearances granted by Casa De Corazon to the franchisee.
For a prospective Casa De Corazon franchisee, this implies a long-term commitment. The franchisee cannot assume that their personal liability ends with the initial term of the agreement. The guarantee extends to any renewed terms, meaning the franchisee's personal assets remain at risk for the duration of the franchise relationship. This continuing guarantee provides Casa De Corazon with ongoing assurance that the franchisee will meet their financial and operational obligations.