Who is the 'Developer' in the context of the Cinnaholic Guaranty Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Until all obligations of Developer to Franchisor have been satisfied, the obligations of the undersigned under this Guaranty shall remain in full force and effect without regard to, and shall not be released, discharged or in any way modified or affected by, any circumstance or condition (whether or not the undersigned shall have any knowledge or notice thereof), including, without limitation, any bankruptcy, insolvency, reorganization, composition, liquidation or similar proceeding, with respect to Developer or its properties or creditors, or any action taken by any trustee or receiver or by any court in any such proceeding. Each of the undersigned specifically waives any rights that may be conferred upon the undersigned as a guarantor or surety under the applicable law of any state. The remedies provided herein shall be nonexclusive and cumulative of all other rights, powers and remedies provided under the Development Agreement or by law or in equity.
The undersigned hereby agree that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder, any term, covenant or condition of the Development Agreement may be amended, compromised, released or otherwise altered by Franchisor and the Developer and the undersigned do guarantee and promise to perform all of the obligations of the Developer under the Development Agreement as so amended, compromised, released or altered.
Upon notice from Franchisor that Developer has failed to pay monies due and owing to Franchisor under the Development Agreement, any and each of the undersigned agree to cure the monetary default within five business days from such notice. Upon the death of an undersigned, the estate of such undersigned shall be bound by this Guaranty but only for defaults and obligations hereunder existing at the time of death. The obligations of the surviving undersigned shall continue in full force and effect.
The undersigned expressly acknowledge that the obligations hereunder survive the termination of the Development Agreement.
Franchisor's failure to enforce all or any portion of its rights under this Guaranty shall not constitute a waiver of its ability to do so at any point in the future.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the 'Developer' in the context of the Guaranty Agreement refers to the entity whose obligations are being guaranteed by the undersigned. This means the Guaranty ensures that if the Developer fails to meet its financial or performance obligations to Cinnaholic under the Development Agreement, the guarantor(s) will step in to fulfill those obligations.
The Guaranty Agreement stipulates that the obligations of the guarantor remain in effect until all the Developer's obligations to Cinnaholic are satisfied. This includes scenarios such as bankruptcy or similar proceedings involving the Developer. The guarantor also waives certain rights they might have under state laws as a guarantor or surety.
Furthermore, the agreement allows Cinnaholic and the Developer to amend the Development Agreement without requiring consent or notice to the guarantor, and the guarantor remains responsible for the Developer's obligations under the altered agreement. The guarantor is obligated to cure any monetary default by the Developer within five business days of receiving notice from Cinnaholic. This arrangement protects Cinnaholic by ensuring a secondary party is liable for the Developer's commitments, thereby mitigating Cinnaholic's risk in the event the Developer is unable to meet its obligations.