Is the Cinnaholic Guaranty Agreement considered continuing and irrevocable?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
t Agreement or any interest in Developer, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable throughout the term of the Development Agreement and any extension or renewal thereof and thereafter until all obligations of Developer to Franchisor have been satisfied.
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.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the obligations of the guarantor under the Guaranty Agreement remain in full force and effect until all obligations of the developer to Cinnaholic are satisfied. This is without regard to any circumstance or condition, including bankruptcy, insolvency, or similar proceedings. The guarantor's obligations are not released, discharged, or modified by such events. The guarantor also waives any rights conferred as a guarantor or surety under state law. These obligations survive the termination of the Development Agreement.
This means that as a Cinnaholic franchisee, your personal guarantee will remain in effect for the entire duration of the agreement and will not be cancelled out by events such as bankruptcy.
Cinnaholic's failure to enforce its rights under the Guaranty Agreement does not constitute a waiver of its ability to do so in the future. This clause ensures that Cinnaholic retains the right to enforce the guarantee at any time, even if they have not done so previously. The agreement can be altered by Cinnaholic and the developer without notifying the guarantor.