During the term of the Cicis Agreement, can the Guaranty be revoked?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor consents and agrees that: (1) Guarantor's direct and immediate liability under this Guaranty will be joint and several, both with Developer and among other guarantors; (2) Guarantor will render any payment or performance required under the Agreement upon demand if Developer fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon our pursuit of any remedies against Developer or any other person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence which we may from time to time grant to Developer 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 will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Agreement; and (5) at our request, each Guarantor shall present updated financial information to us as reasonably necessary to demonstrate such Guarantor's ability to satisfy the financial obligations of Developer under the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Guaranty is irrevocable during the term of the agreement. Each Guarantor consents and agrees that their liability will be continuing and irrevocable during the term of the Agreement. This means that once the Guaranty is signed, it cannot be revoked or canceled while the Franchise Agreement is in effect.
This provision is significant for potential Cicis franchisees because it ensures that the franchisor has a continuous and reliable guarantee for the franchisee's obligations. The guarantor cannot simply withdraw their guarantee, which provides Cicis with financial security throughout the term of the agreement. This irrevocability protects Cicis in case the franchisee defaults on their financial or performance obligations.
For a prospective franchisee, this means understanding the full extent of the obligations being guaranteed and ensuring that the guarantor is fully aware of the long-term commitment. Before signing the Guaranty, potential guarantors should carefully consider their financial situation and ability to meet the obligations if the franchisee fails to do so. Seeking legal and financial advice is advisable to fully comprehend the implications of providing an irrevocable guarantee.