Who is the Franchisor referred to in the Cd One Price Cleaners personal guaranty?
Cd_One_Price_Cleaners Franchise · 2025 FDDAnswer from 2025 FDD Document
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| given this |
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| , 202, by the undersigned. |
| Franchisee: |
| Date of Franchise Agreement: |
In consideration of, and as an inducement to, the execution of the CD Store Franchise Agreement dated as indicated above (the "Franchise Agreement") by Cleaners Depot Franchise, LLC ("Franchisor"), each of the undersigned and any other parties who sign counterparts of this guaranty (referred to herein individually as a "Guarantor" and collectively as "Guarantors") hereby personally and unconditionally: (a) guarantees to Franchisor, and its successors and assigns, for the term of the Franchise Agreement and thereafter as provided in the Franchise Agreement, that Franchisee shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Franchise Agreement and any other agreement between Franchisor (or its affiliate) and Franchisee relating directly or indirectly thereto (together with the Franchise Agreement, collectively, the "Franchise Documents"); and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Franchise Documents as if the undersigned were a signatory to the Franchise Documents, both monetary obligations and other obligations, including, without limitation, arbitration obligations, confidentiality obligations, transfer obligations, the obligation to pay costs and legal fees as provided in the Franchise Documents, and the obligation to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities (including, without limitation, the provisions of the Franchise Agreement relating to competitive activities).
Each of the undersigned waives: (i) all rights to payments and claims for reimbursement or subrogation that any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty, for the express purpose that none of the undersigned shall be deemed a "creditor" of Franchisee under any applicable bankruptcy law with respect to Franchisee's obligations to Franchisor; (ii) all rights to require Franchisor to proceed against Franchisee for any payment required under the Franchise Documents, proceed against or exhaust any security from Franchisee, take any action to assist any of the undersigned in seeking reimbursement or subrogation in connection with this Guaranty or pursue, enforce or exhaust any remedy, including any legal or equitable relief, against Franchisee; (iii) any benefit of, any right to participate in, any security now or hereafter held by Franchisor; and (iv) acceptance and notice of acceptance by Franchisor of his, her or its undertakings under this Guaranty, all presentments, demands and notices of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed, protest, notices of dishonor, notices of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed, and any other notices and legal or equitable defenses to which he, she or it may be entitled. Franchisor shall have no present or future duty or obligation
to the undersigned under this Guaranty, and each of the undersigned waives any right to claim or assert any such duty or obligation, to discover or disclose to the undersigned any information, financial or otherwise, concerning Franchisee, any other guarantor, or any collateral securing any obligations of Franchisee to Franchisor.
Source: Item 22 — Contracts (FDD page 72)
What This Means (2025 FDD)
According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, the franchisor referred to in the personal guaranty is Cleaners Depot Franchise, LLC. The guaranty ensures that the franchisee will fulfill all obligations and agreements outlined in the Franchise Agreement and any related documents.
Under the personal guaranty, the guarantor is bound by all provisions in the Franchise Documents as if they were a signatory, including monetary obligations, arbitration obligations, confidentiality obligations, and obligations related to competitive activities. This means the guarantor is personally liable for any breaches of the Franchise Agreement by the franchisee.
The guarantor's liability is direct, immediate, and joint and several with both the franchisee and other guarantors. This liability is not contingent upon the franchisor pursuing remedies against the franchisee first. The guaranty remains in effect throughout the term of the Franchise Documents and continues as long as any monies or obligations are owed to Cleaners Depot Franchise, LLC. Any acknowledgment of debt by the franchisee, accepted by the franchisor, or any judgment by a court or arbitrator, is binding on the guarantors.
If Cleaners Depot Franchise, LLC, has to enforce the guaranty through legal proceedings and wins, the guarantor is responsible for covering all costs and expenses, including attorney's fees, accountant's fees, and court costs. This also applies if legal counsel is engaged due to the guarantor's failure to comply with the guaranty. This arrangement is typical in franchising, as it provides the franchisor with an additional layer of security and assurance that the franchisee's obligations will be met.