factual

What must the Developer punctually do according to the Cinnaholic Guaranty Agreement?

Cinnaholic Franchise · 2025 FDD

Answer from 2025 FDD Document

In consideration of, and as an inducement to, the execution by CINNAHOLIC FRANCHISING,
LLC ("Franchisor") of that certain CINNAHOLIC FRANCHISING, LLC Market Development
Agreement, dated , 20 (as the same from time to time may be amended or modified, the
"Development Agreement"), by and between ("Developer") and
Franchisor,
the
undersigned,
for
the
term
of
the
Development
Agreement,
and
thereafter
until
all
obligations
of Developer
to
Franchisor
have
been
satisfied,
jointly
and
severally,
do
hereby
personally,
absolutely, and
unconditionally guarantee that Developer shall punctually pay and perform each and every undertaking,
condition, and covenant set forth in the Development Agreement.

Source: Item 22 — CONTRACTS (FDD pages 61–62)

What This Means (2025 FDD)

According to the 2025 Cinnaholic FDD, the Guaranty Agreement stipulates that the undersigned (Guarantor) guarantees the Developer will punctually pay and perform each undertaking, condition, and covenant outlined in the Development Agreement. This guarantee is made in consideration of, and as an inducement to, Cinnaholic Franchising, LLC entering into the Development Agreement with the Developer.

In simpler terms, the guarantor is promising that the developer will fulfill all financial and operational obligations as specified in the Development Agreement. This includes making payments on time and adhering to all the terms and conditions of the agreement. The guarantor's commitment is absolute and unconditional, ensuring that Cinnaholic receives what is due under the Development Agreement.

This requirement protects Cinnaholic by providing an additional layer of security. If the developer fails to meet their obligations, Cinnaholic can seek recourse directly from the guarantor. This arrangement reduces the risk for Cinnaholic and ensures that there is a responsible party who is ultimately accountable for the developer's performance under the Development Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
All Cinnaholic 2025 FAQs Ask FDD Ninja