Does the Circle K Personal Guaranty include a waiver of the right to a jury trial?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, the undersigned consents and agrees that: (i) the undersigned's liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against Franchisee, or any other person; and (ii) such liability will not be diminished, relieved or otherwise affected by Franchisee's insolvency, bankruptcy or reorganization, the invalidity, illegality or unenforceability of all or any part of the Agreements, or any amendment or extension to the Agreements with or without notice to the undersigned.
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. The undersigned agrees to pay any and all attorneys' fees, costs of suit and expenses incurred by Franchisor in connection with this Guaranty or in the collection of any of indebtedness from Debtor
or the undersigned. THE UNDERSIGNED WAIVES THE RIGHT TO A JURY TRIAL IN ANY LAWSUIT RELATED TO THIS GUARANTY.
It is further understood and agreed by the undersigned that the provisions, covenants and conditions of this Guaranty will inure to the benefit of Franchisor's successors and assigns.
The undersigned authorizes Franchisor to obtain a credit report on the undersigned.
Any married person who signs this Guaranty hereby expressly agrees that recourse may be made against both his or her separate property and community property interest for all obligations under this Guaranty.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, the Personal Guaranty does include a waiver of the right to a jury trial. Specifically, the guarantor waives the right to a jury trial in any lawsuit related to the guaranty. This means that any legal disputes arising from the Personal Guaranty will be resolved by a judge rather than a jury.
This waiver has significant implications for prospective Circle K franchisees. By signing the Personal Guaranty, they are giving up their right to have a jury decide any legal issues related to the guaranty. Jury trials can be more advantageous for the defendant in some cases, as they allow for a decision by a group of peers rather than a single judge. Waiving this right means the guarantor is agreeing to have a judge make all decisions in any lawsuit pertaining to the guaranty.
It is important for potential Circle K franchisees to carefully consider the implications of this jury trial waiver before signing the Personal Guaranty. They should consult with an attorney to understand the potential risks and benefits of waiving this right. This is a standard clause in many franchise agreements, but its impact should not be overlooked. Franchisees should be fully aware of the legal ramifications before committing to the agreement.
In addition to waiving the right to a jury trial, the guarantor also agrees to pay any and all attorneys' fees, costs of suit, and expenses incurred by Circle K in connection with the Guaranty or in the collection of any indebtedness from the debtor or the guarantor. This further emphasizes the importance of understanding the full scope of the obligations and potential liabilities associated with the Personal Guaranty.