What specific undertakings of the Franchisee are guaranteed under the Cinnaholic Guaranty Agreement?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
| ("Franchisor") of that certain Cinnaholic | Franchise Agreement, | dated , 20 (as the same |
|---|---|---|
| from time to time may be amended, | modified, extended or renewed, | the "Franchise Agreement"), by and |
| between | ("Franchisee") | the |
| and | undersigned, for the | |
| Franchisor, | term of the | |
| Franchise Agreement and any | extension or renewal thereof, and | thereafter until all obligations of Franchisee to Franchisor have been satisfied, jointly and severally, do hereby personally, absolutely, and unconditionally guarantee that Franchisee shall punctually pay and perform each and every undertaking, |
| condition, and covenant set forth in the Franchise Agreement. |
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, the Guaranty Agreement ensures that the franchisee will punctually pay and perform each undertaking, condition, and covenant outlined in the Franchise Agreement. This guarantee extends for the entire term of the Franchise Agreement, including any extensions or renewals, and continues until all of the franchisee's obligations to Cinnaholic have been fully satisfied.
This means that a guarantor (likely a principal owner or related party) is personally liable for the franchisee's financial and operational responsibilities to Cinnaholic. The guarantor's obligations remain in effect regardless of circumstances such as bankruptcy or other legal proceedings involving the franchisee. The guarantor also waives rights typically afforded to guarantors or sureties under state laws.
Furthermore, the Guaranty Agreement stipulates that the obligations of the guarantor are not affected even if the Franchise Agreement is amended or altered, without requiring consent or notice to the guarantor. The guarantor promises to fulfill all obligations under the amended agreement. Upon notification from Cinnaholic that the franchisee has failed to pay monies owed, the guarantor must cure the monetary default within five business days. The obligations of the Guaranty Agreement survive the termination of the Franchise Agreement.
This arrangement provides Cinnaholic with a strong assurance that all financial and operational commitments will be met, as it has recourse to the personal assets of the guarantor. Prospective franchisees should carefully consider the implications of the Guaranty Agreement and ensure that anyone acting as a guarantor fully understands the extent of their obligations and potential liabilities.