Does the Churchs Chicken Guaranty Agreement explicitly state any exceptions to the Guarantor's obligations?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) The restrictions in Sections 4(a)(ii) and 4(b) shall not apply to Developer's existing restaurant or foodservice operations, if any, which are identified in Schedule 1 to the Agreement, nor shall such restrictions apply to other restaurants operated by Developer that are franchised by Cajun or its affiliates.
If a court finds that any restriction in Section 4(a) or 4(b) is not enforceable, it is the intent of the parties that the court modify such restriction to the extent reasonably necessary to protect the legitimate business interests of Cajun.
If, at any time during the restrictive period following the expiration or earlier termination of the Agreement, Guarantor fails to comply with Guarantor's obligations under this Section, that period of noncompliance will not be credited toward Guarantor's completion of the restrictive period provided that Cajun takes action to enforce the obligations under this Section within the restrictive period.
- s(d) Cajun shall have the right, in its sole discretion, to reduce the extent of any covenant in this Section effective immediately upon Guarantor's receipt of notice, and Guarantor shall be bound by the covenant as so reduced.
- Modification of Agreement. Guarantor agrees that Guarantor's liability hereunder shall not be diminished, relieved or otherwise affected by (a) any amendment of the Agreement, (b) any extension of time, credit or other indulgence which Cajun may from time to time grant to Developer or to any other person or entity, or (c) the acceptance of any partial payment or performance or the compromise or release of any claims.
6. Governing Law and Jurisdiction.
- (a) This Guaranty and any claim or controversy arising out of, or relating to, rights and obligations of the parties under this Guaranty and any other claim or controversy between the parties shall be governed by and construed in accordance with the laws of the State of Georgia without regard to conflicts of laws principles. Nothing in this Section is intended, or shall be deemed, to make any Georgia law regulating the offer or sale of franchises or the franchise relationship applicable to this Guaranty if such law would not otherwise be applicable.
- (b) Cajun may file suit in the federal or state court located in the jurisdiction where its principal offices are located at the time suit is filed or in the jurisdiction where Guarantor resides or does business or where the Franchised Restaurant is or was located or where the claim arose. Guarantor consents to the personal jurisdiction of those courts over Guarantor and to venue in those courts and waives all objections to the same.
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- Miscellaneous. This Guaranty shall inure to the benefit of and be binding upon the parties and their respective heirs, legal representatives, successors and assigns. Cajun may assign this Guaranty, in whole or in part. Any assignment shall not release the undersigned from this Guaranty. If more than one person signs this Guaranty as guarantor, then the liability of each such guarantor shall be joint and several, and the covenants in Sections 3 and 4 shall apply to each guarantor individually. This Guaranty shall continue in full force and effect until expressly released by Cajun.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the Guaranty Agreement outlines specific exceptions to the Guarantor's obligations. Notably, the restrictions on the Guarantor's involvement in competing fried chicken businesses do not apply to existing restaurant or foodservice operations that are identified in Schedule 1 of the agreement. Additionally, these restrictions do not extend to other restaurants operated by the Developer that are franchised by Cajun or its affiliates.
Furthermore, Churchs Chicken retains the right to modify the extent of any covenant within the Guaranty Agreement. Cajun can reduce the scope of any covenant, and this reduction becomes effective immediately upon the Guarantor receiving notice. The Guarantor is then bound by the covenant as it has been reduced by Churchs Chicken.
The Guarantor's liability will not be affected by any amendments to the agreement, extensions of time or credit granted to the Developer, or the acceptance of partial payments or compromise of claims. The Guaranty remains in full effect until Churchs Chicken expressly releases the Guarantor. These stipulations ensure that the obligations of the Guarantor remain intact despite changes to the franchise agreement or arrangements between Churchs Chicken and the franchisee, unless explicitly released by Churchs Chicken.