What state's laws govern the Casa De Corazon Guaranty?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
PERSONAL GUARANTY
THIS PERSONAL GUARANTY ("Guaranty") is executed effective as of by ("Guarantor"), in favor of CASA DE CORAZON, INC., a Minnesota corporation ("Payee").
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Casa De Corazon Franchise Disclosure Document, the Personal Guaranty form indicates that CASA DE CORAZON, INC. is a Minnesota corporation. Therefore, the laws of Minnesota likely govern the Guaranty.
The Guaranty is executed by the Guarantor in favor of CASA DE CORAZON, INC., and references a Promissory Note issued to Payee (CASA DE CORAZON, INC.) by the Borrower. The Guarantor, as the sole owner of the Borrower, acknowledges receiving benefits from the Note transaction. As a condition for the loan, the Guarantor agrees to guarantee the Borrower's obligations under the Note.
This agreement specifies that the Guarantor is bound by the terms outlined, ensuring the fulfillment of financial obligations. This arrangement is designed to protect Casa De Corazon by providing a legal recourse to ensure financial obligations are met.
Prospective franchisees should consult with a legal professional to fully understand the implications of the Guaranty and how Minnesota law applies to their specific situation.