For how long does the Chicken Guy Guarantee remain in effect?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (i) his direct and immediate liability under this Guarantee shall be joint and several; (ii) he shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (iii) such liability shall not be contingent or conditioned upon pursuit by Chicken Guy of any remedies against Franchisee or any other person; (iv) such liability shall not be diminished, relieved or otherwise affected by any amendment of the Agreement, any extension of time, credit or other indulgence which Chicken Guy may from time to time grant to Franchisee or to any other person including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which shall in any way modify or amend this Guarantee, which shall be continuing and irrevocable during the term of the Agreement and for so long thereafter as there are monies or obligations owing from Franchisee to Chicken Guy or its affiliates under the Agreement; and (v) monies received from any source by Chicken Guy for application toward payment of the obligations under the Agreement and under this Guarantee may be applied in any manner or order deemed appropriate by Chicken Guy.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, the Guarantee remains in effect during the term of the Franchise Agreement. It also continues for as long as there are outstanding monies or obligations owed by the franchisee to Chicken Guy or its affiliates under the agreement.
This means that the personal guarantee provided by the franchisee (and potentially other individuals) extends beyond the initial term of the agreement if any financial obligations remain. These obligations could include unpaid royalties, vendor payments, or any other debts related to the operation of the Chicken Guy franchise.
For a prospective Chicken Guy franchisee, this highlights the importance of understanding all financial obligations and potential liabilities associated with the franchise. It also emphasizes the need to ensure all debts are settled upon termination or expiration of the agreement to avoid the guarantee remaining in effect indefinitely. Franchisees should seek legal counsel to fully understand the implications of the guarantee and strategies for managing their financial obligations to Chicken Guy.