Under the Cicis Guaranty, what does each Guarantor personally guarantee to On Smile LLC?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
t: □ b. □ Cicis Buffet Restaurant Cicis to Go c. Protected Area: [attach map] 3. Section 4 (Fees): □ $30,000 □ $15,000 Initial Franchise Fee: □ $ [NAME OF FRANCHISEE] ON SMILE LLC, a Delaware limited liability company
ATTACHMENT B TO FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS ("GUARANTY")
THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given by each of the undersigned persons indicated below who have executed this Guaranty (each a "Guarantor") to be effective as of the Effective Date of the Agreement (defined below).
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (as amended, modified, restated or supplemented from time to time, the "Agreement") on this date by On Smile LLC ("us," "we," or "our"), each Guarantor personally and unconditionally (a) guarantees to us and our successors and assigns, for the term of the Agreement and afterward as provided in the Agreement, that ________________\
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, each Guarantor signing the Guaranty and Assumption of Obligations agreement provides a personal and unconditional guarantee to On Smile LLC (Cicis). This guarantee ensures that the Franchisee will punctually pay and perform every commitment outlined in the Franchise Agreement for the agreement's duration and afterward, as specified in the agreement.
Furthermore, each Guarantor agrees to be personally bound by and liable for any breaches of the Franchise Agreement. This includes both monetary obligations and the responsibility to take or avoid specific actions or activities. These obligations extend to non-competition, confidentiality, and adherence to transfer requirements detailed in the agreement.
In essence, the Guarantor is stepping in to ensure the Franchisee fulfills all obligations to Cicis. This arrangement is a common practice in franchising, where franchisors seek additional security, especially when the Franchisee is a business entity. The personal guarantee mitigates Cicis's risk by holding individuals directly accountable for the franchise's performance and compliance with the Franchise Agreement.