Under the Cicis Guaranty, is a Guarantor's liability joint or individual?
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 Franchisee and among other guarantors; (2) Guarantor will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon our pursuit of any remedies against Franchisee 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 Franchisee 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 Franchisee under the Agreement.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 FDD, under the Cicis Guaranty, a Guarantor's liability is joint and several. This means that each guarantor is liable both individually and together with the franchisee and other guarantors for the franchisee's obligations under the Franchise Agreement.
This has significant implications for prospective Cicis franchisees who require a guarantor. If the franchisee fails to meet their obligations, Cicis can pursue any one or all of the guarantors for the full amount owed, regardless of the contributions of other parties. This also means that a guarantor cannot avoid liability by arguing that Cicis should first pursue the franchisee or other guarantors.
Furthermore, the guarantor's liability is not contingent on Cicis first pursuing remedies against the franchisee or any other person. The liability also will not be affected by any extensions of time, credit, or other allowances that Cicis may grant to the franchisee. This underscores the comprehensive and unconditional nature of the guaranty, highlighting the importance of fully understanding the obligations before signing the Guaranty and Assumption of Obligations.