What is the significance of the date on the Cinch I.T. Guaranty Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
This guaranty agreement is entered into on this day of , 20 , between with [his/her] residential address at ("Guarantor") and Cinch Franchise, LLC with its principal address at 27 West Mountain Street, Worcester, Massachusetts 01606 ("Franchisor"). RECITALS A. Whereas, Franchisor and ("Franchisee") have entered into a Franchise Agreement dated ("the Franchise Agreement"). B. 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
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the date on the Guaranty Agreement establishes when the guarantor's obligations become effective. The Guaranty Agreement, as described in Addendum C, is entered into on a specific day and year between the guarantor and Cinch Franchise, LLC. Recital A within the agreement references the Franchise Agreement's date, further linking the guarantor's obligations to the specific terms and conditions outlined in that Franchise Agreement.
The guarantor, who is often a shareholder, director, officer, member, trustee, or partner of the franchisee, commits to ensuring the franchisee's obligations are met. The guarantor's obligations under this agreement are effective on the effective date of the Multi-Unit Development Agreement, regardless of when the agreement was actually signed. This means that the guarantor is bound by the terms from the moment the Multi-Unit Development Agreement comes into force.
Furthermore, the Guaranty Agreement remains in effect throughout the term of the Multi-Unit Development Agreement and may extend beyond its termination or expiration if required by the agreement. This enduring commitment ensures that Cinch I.T. has continuous protection regarding the franchisee's performance. The agreement also specifies that the guarantor's obligations persist even in the event of the guarantor's death, with the guarantor's estate remaining liable for any existing defaults or obligations at the time of death.