table_specific

In the Coffee News Debtor acknowledgement, what schedule is the Debtor executing?

Coffee_News Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT A TO SCHEDULE B and/or SCHEDULE C

GUARANTY OF PERFORMANCE

(To Be Executed by Principal Stockholder(s) If Franchisee/Debtor is a Corporation, professional corporation, partnership, limited liability partnership, limited liability company)

FOR VALUE RECEIVED, and in consideration for, and as in inducement to Coffee News USA, Inc. as the Holder to make the foregoing Schedule B / C to Coffee News Franchise [name of the Franchisee/Debtor], as the Debtor Agreement with (the "Schedule B"), the undersigned, who each own 5% or more of the Debtor, unconditionally guarantee the full performance of all the covenants, conditions and agreements therein provided to be performed and observed by the Debtor and the Debtor's successors and assigns pursuant to the Schedule B / C and the Promissory Note contained therein, and expressly agrees that the validity of this Guaranty of Performance and the obligations of the guarantor(s) hereunder shall not be terminated, affected or impaired by reason of the granting by Holder of any indulgences to Debtor or by reason of the assertion by Holder against Debtor of any of the rights or remedies reserved to Holder pursuant to the provisions of the Schedule B / C or by the relief of Debtor from any of Debtor's obligations under said Schedule B / C by operation of law or otherwise (including without implied limitation, the rejection or assignment of the Schedule B / C and/or the Promissory Note) in connection with proceedings under bankruptcy laws now or hereafter enacted), irrespective of Holder's consent or other action or inaction with respect to such relief, the undersigned hereby waiving notice, protest, demand of the acceptance of this Guaranty all suretyship defenses and all defenses in the nature thereof.

Source: Item 23 — Receipts (FDD pages 36–118)

What This Means (2025 FDD)

According to the 2025 Coffee News Franchise Disclosure Document, the Debtor executes Schedule B and/or Schedule C. Exhibit A to Schedule B and/or Schedule C is a Guaranty of Performance to be executed by principal stockholders if the franchisee/debtor is a corporation, professional corporation, partnership, limited liability partnership, or limited liability company.

Specifically, the guarantor(s), owning 5% or more of the debtor, unconditionally guarantee the full performance of all covenants, conditions, and agreements outlined in Schedule B / C and the Promissory Note. This includes the debtor's obligations to Coffee News USA, Inc. The guarantor's obligations remain valid even if Coffee News grants indulgences to the debtor or if the debtor is relieved of obligations under Schedule B / C due to legal proceedings, including bankruptcy.

This arrangement protects Coffee News by ensuring that the obligations of the franchisee are guaranteed by the principal owners, reducing the risk of non-performance. Prospective franchisees should carefully review Schedule B and Schedule C, as well as the Guaranty of Performance, to fully understand the obligations they are undertaking and the potential liabilities of the guarantors.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.