What obligations of the Developer does the Guarantor unconditionally and irrevocably guarantee prompt performance of to Chatime?

According to Chatime's 2025 Franchise Disclosure Document, the Guarantor provides an unconditional and irrevocable guarantee to Chatime for the prompt performance of all obligations of the Developer as outlined or implied within the Development Agreement. This means that if the Developer fails to meet any of their responsibilities, whether it's a payment obligation or another requirement of the agreement, Chatime can seek recourse directly from the Guarantor.

Specifically, if the Developer's obligation involves paying money, Chatime has the right to recover the owed amount from the Guarantor as a liquidated debt. This clause ensures that Chatime has a direct avenue for recovering funds in case of the Developer's financial shortcomings. The guarantee remains in effect until Chatime provides a final release, regardless of any settlements or account adjustments made.

Furthermore, the Guarantor's liability is not affected by various factors such as granting extensions to the Developer, releasing the Developer from obligations, changes to the Development Agreement, transfers of the agreement by the Developer, termination of the agreement, or any disputes between the Developer and Chatime. This comprehensive guarantee protects Chatime's interests by ensuring that the Guarantor remains responsible for the Developer's obligations, even under changing circumstances or disputes. This arrangement is a standard practice in franchising to provide additional security to the franchisor.