Is the guarantor's guarantee to Cinch I.T. unconditional?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- (iv) The transferee must enter into a written assignment, under seal and in a form satisfactory to Us, assuming and agreeing to discharge all of Your obligations under this Agreement and the relevant Franchise Agreement(s), and the transferee's principals, individually, shall guarantee the performance of all these obligations in writing in a form satisfactory to Us;
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
Based on the 2024 Cinch I.T. Franchise Disclosure Document, if a multi-unit developer wishes to transfer any portion, or all, of the Development Area, Cinch I.T. may require that the transferee's principals individually guarantee the performance of all obligations in writing in a form satisfactory to them.
The FDD does not specify whether this guarantee is unconditional. The FDD states that the transferee must enter into a written assignment, under seal and in a form satisfactory to Cinch I.T., assuming and agreeing to discharge all of the obligations under the agreement and relevant Franchise Agreements.
To fully understand the obligations and conditions of the guarantor's guarantee, a prospective Cinch I.T. franchisee should ask the franchisor for a copy of the exact form of guarantee that Cinch I.T. requires. This will allow the prospective franchisee to review the specific terms and conditions of the guarantee with their legal counsel.