What claims against the Debtor are waived by the undersigned in the Circle K Personal Guaranty?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned irrevocably waives, disclaims and relinquishes any and all claims against Debtor which the undersigned otherwise has or would have by virtue of having executed this Guaranty, specifically including, but not limited to, all rights of indemnity, contribution or exoneration. The undersigned expressly subordinates any and all claim(s) against Debtor upon any account whatsoever to any claim(s) that Franchisor may have against Debtor at any time and for any reason.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the personal guaranty requires the undersigned to irrevocably waive, disclaim, and relinquish any and all claims against the Debtor (the franchisee). This includes all rights of indemnity, contribution, or exoneration that the guarantor might otherwise have due to executing the guaranty.
In practical terms, this means that if the guarantor (typically a principal equity holder) has to pay Circle K on behalf of the franchisee (the Debtor), the guarantor cannot then seek reimbursement or contribution from the franchisee for those payments. The guarantor is essentially giving up any legal recourse against the franchisee related to the guaranty.
Furthermore, the guarantor expressly subordinates any and all claims against the Debtor to any claims that Circle K may have against the Debtor. This subordination ensures that Circle K's claims take priority over any claims the guarantor might have against the franchisee. This clause is designed to protect Circle K's financial interests in the event of a default by the franchisee.
This is a significant commitment and potential risk for the guarantor, as they are personally liable for the franchisee's obligations to Circle K, without the ability to seek recovery from the franchisee. Prospective Circle K franchisees should carefully consider the implications of the personal guaranty and seek legal counsel to fully understand their obligations and potential liabilities.