As a Chocolate Fish Coffee franchisee, am I required to sign a Guaranty?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, whether you need to sign a personal guaranty depends on the structure of your business. If the franchisee is an entity, then each owner must sign a personal guaranty, as detailed in Attachment 3 of the Franchise Agreement. This guaranty ensures that the owners personally guarantee the franchisee's obligations to Chocolate Fish Franchising.

The guarantor unconditionally guarantees that the franchisee will pay and perform every undertaking, agreement, and covenant outlined in the Franchise Agreement. This includes any other liabilities or obligations the franchisee has to Chocolate Fish Franchising, regardless of whether they are specifically mentioned in the Franchise Agreement. The guarantor must fulfill any payment or performance required under the Franchise Agreement or any other agreement with Chocolate Fish Franchising upon demand.

The guarantor also waives several rights, including the right to require Chocolate Fish Franchising to take action against the franchisee before demanding payment from the guarantor. This means Chocolate Fish Coffee can seek payment directly from the guarantor without first pursuing the franchisee. The guaranty is governed by Wyoming law, and the dispute resolution provisions of the Franchise Agreement also apply to the guaranty.