For Cicis, what is the governing law for the Guaranty?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions contained in Section 9 (Enforcement) of the Agreement, including Section 9.A (Jurisdiction and Venue), Section 9.B (Governing Law) and Section 9.E (Costs and Attorneys' Fees) of the Agreement are incorporated into this Guaranty by reference and shall govern this Guaranty and any disputes between the Guarantors and us. The Guarantors shall reimburse us for all costs and expenses we incur in connection with enforcing the terms of this Guaranty.
By signing below, the undersigned spouse of each Guarantor indicated below, acknowledges and consents to the guaranty given herein by his/her spouse. Such consent also serves to bind the assets of the marital estate to Guarantor's performance of this Guaranty. We confirm that a spouse who signs this Guaranty solely in his or her capacity as a spouse (and not as an owner) is signing merely to acknowledge and consent to the execution of the Guaranty by his or her spouse and to bind the assets of the marital estate as described therein and for no other purpose (including, without limitation, to bind the spouse's own separate property).
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Guaranty is governed by the same laws as the Franchise Agreement. Specifically, Section 9 of the Franchise Agreement, which includes subsections on jurisdiction and venue, governing law, and costs and attorneys' fees, is incorporated by reference into the Guaranty. This means that the same legal framework that applies to the Franchise Agreement also applies to the Guaranty.
For a prospective Cicis franchisee, this means that any disputes related to the Guaranty will be subject to the same jurisdiction, venue, and governing law as disputes related to the Franchise Agreement itself. This ensures consistency in legal proceedings and interpretations. Additionally, guarantors are responsible for reimbursing Cicis for all costs and expenses incurred while enforcing the terms of the Guaranty.
This clause is significant because it clarifies the legal obligations of the guarantor and ensures that Cicis has recourse to recover costs associated with enforcing the Guaranty. The spouse of each guarantor must also acknowledge and consent to the guaranty, binding the assets of the marital estate to the guarantor's performance. This provision aims to protect Cicis's interests by ensuring that the guarantor's obligations are backed by sufficient assets and are legally enforceable.