What roles can a guarantor hold in relation to the Cinch I.T. franchisee?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
Whereas, Guarantor is a shareholder, director, officer, member, trustee, and/or partner of Franchisee. C. Now, Therefore, in consideration of and as an inducement to Franchisor to enter into the Franchise Agreement with Franchisee and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor hereby covenants and agrees as follows: 1. Guarantor warrants that the facts contained in Recital A and B are correct; 2. Guarantor has read the terms and conditions of the Franchise Agreement; 3. Guarantor personally and unconditionally makes all the covenants, representations and agreements of Franchisee set forth in the Franchise Agreement and that Franchisee is obligated to perform thereunder; 4. Guarantor personally, unconditionally and irrevocably guarantees to Franchisor and its successors and assigns that all of Franchisee's obligations, undertakings, agreements and covenants set forth in the Franchise Agreement will be punctually paid and performed during the term of the Franchise Agreement and thereafter, as applicable; 5. Guarantor unconditionally and irrevocably agrees to be personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement by Franchisee; Franchise Agreement;
- Upon default by Franchisee or notice from Franchisor, Guarantor will immediately
make each payment and perform each obligation required of Franchisee under the
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a guarantor can be a shareholder, director, officer, member, trustee, and/or partner of the franchisee. The guarantor enters into a guaranty agreement with Cinch I.T., which is attached as Addendum C to the franchise agreement.
The guarantor warrants that the facts contained in Recital A and B of the agreement are correct and that they have read the terms and conditions of the Franchise Agreement. The guarantor personally and unconditionally makes all the covenants, representations, and agreements of the franchisee set forth in the Franchise Agreement and is obligated to perform under it.
The guarantor also personally, unconditionally, and irrevocably guarantees to Cinch I.T. that all of the franchisee's obligations, undertakings, agreements, and covenants set forth in the Franchise Agreement will be punctually paid and performed during the term of the Franchise Agreement and thereafter, as applicable. The guarantor agrees to be personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement by the franchisee. Upon default by the franchisee or notice from Cinch I.T., the guarantor will immediately make each payment and perform each obligation required of the franchisee under the Franchise Agreement.