Where in the Cinch I.T. franchise agreement can I find the 'Guaranty Agreement' addendum?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
our personal attributes and in consideration of the trust and confidence which We place in You, and on Your representation that You will actively and substantially participate personally in the beneficial ownership and management of the CINCH I.T. Franchised Business.
- (b) In the event You are a business entity (including but not limited to a corporation, a limited liability company, a partnership, a limited liability partnership, a trust), in addition to being newly formed, You must complete and sign the Principal Owner's Statement attached to this Agreement as Addendum D and each individual with an ownership interest in You must also sign Addendum D.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the Guaranty Agreement is included as Addendum C to the Franchise Agreement. Specifically, if the franchisee is a business entity, each individual with an ownership interest in the entity must sign the Guaranty Agreement. This agreement ensures that these individuals personally guarantee the franchisee's obligations under the Franchise Agreement.
The purpose of the Guaranty Agreement is to provide Cinch I.T. with additional security, ensuring that the obligations of the franchise are met, even if the business entity itself fails to do so. This is a common practice in franchising, as it holds the owners of the business personally accountable for the franchise's performance.
The Guaranty Agreement, as outlined in Addendum C, requires the guarantor to warrant the accuracy of the recitals in the agreement, acknowledge having read the Franchise Agreement, and agree to personally fulfill the franchisee's obligations. The guarantor also commits to making payments and performing obligations if the franchisee defaults or receives notice from Cinch I.T. This addendum is a standard part of the Cinch I.T. franchise agreement and is designed to protect the franchisor's interests.