Until what point in time does the Cinnaholic Guaranty Agreement remain in effect?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
Until all obligations of Franchisee 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 Franchisee 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 Franchise 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 Franchise Agreement may be amended, compromised, released or otherwise altered by Franchisor and the Franchisee and the undersigned do guarantee and promise to perform all of the obligations of the Franchisee under the Franchise Agreement as so amended, compromised, released or altered.
Upon notice from Franchisor that Franchisee has failed to pay monies due and owing to Franchisor under the Franchise 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 Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Guaranty Agreement remains in full effect until all of the franchisee's obligations to Cinnaholic have been satisfied. This means that the guarantor's obligations are tied to the franchisee's fulfillment of their financial and contractual duties to Cinnaholic.
Notably, the obligations of the guarantor are not released or modified by circumstances such as bankruptcy, insolvency, or similar proceedings involving the franchisee. The guarantor also waives any rights they might have as a guarantor or surety under state law. This underscores the comprehensive nature of the guarantee, designed to protect Cinnaholic's interests regardless of the franchisee's financial difficulties.
Furthermore, the Guaranty Agreement extends to any amendments, compromises, or alterations made to the Franchise Agreement between Cinnaholic and the franchisee, without requiring consent or notice to the guarantor. The guarantor is responsible for ensuring the franchisee performs all obligations under the amended agreement. Even upon the death of a guarantor, their estate remains bound by the agreement for existing defaults and obligations at the time of death, with the obligations of surviving guarantors continuing in full force. The obligations under the Guaranty Agreement survive the termination of the Franchise Agreement.