factual

What is required to assign rights and obligations under Schedule C for a Coffee News franchise?

Coffee_News Franchise · 2025 FDD

Answer from 2025 FDD Document

ho execut of the above named Debtor and, b the Schedule C is true and correct. | (the ted the foregoing Schedule C as | | My Commission expires: | Notary Public |

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.

The undersigned further covenants and agrees that this Guaranty shall continue in full force and effect as to any modification or extension of the Schedule B / C, whether or not the undersigned shall have received any notice of or consented to such modification or extension. The undersigned further agrees that the undersigned's liability under this Guaranty shall be primary, and that in any right of action which shall accrue to Holder under said Schedule B / C, Holder may, at Holder's option, proceed against the undersigned and Debtor, jointly and severally, and may proceed against any or all of the undersigned without having commenced any action against or having obtained any judgment against Debtor. In addition to any other remedies Holder may have against the undersigned and the obligations of the undersigned to Holder, the undersigned shall reimburse Holder for all costs and liabilities incurred by Holder in connection with the enforcement of this Guaranty of the Schedule B / C or a default under either including, without limitation, all costs of collection and reasonable attorney's fees.

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

What This Means (2025 FDD)

Based on the 2025 Coffee News Franchise Disclosure Document, Schedule C relates to a Promissory Note. If the franchisee/debtor is a corporation, professional corporation, partnership, limited liability partnership, or limited liability company, principal stockholders owning 5% or more of the debtor must execute a Guaranty of Performance. This guaranty ensures the full performance of all covenants, conditions, and agreements outlined in Schedule B or C and the Promissory Note.

The guarantor(s) unconditionally guarantee the debtor's obligations and agree that their obligations won't be affected by any indulgences granted to the debtor by Coffee News USA, Inc. as the Holder, or by the assertion of rights against the debtor. This includes any relief of the debtor's obligations under Schedule B/C, even in cases of bankruptcy proceedings. The guarantor(s) waive any notice, protest, demand, or acceptance of the Guaranty, as well as all suretyship defenses.

Furthermore, the debtor acknowledges and agrees to grant Coffee News USA, Inc. all licensed rights to the territory granted in the Coffee News Franchise Agreement as security for payments set forth in the Promissory Note and the performance of all related covenants. If the debtor fails to pay interest, principal, or any other amount due, or breaches any covenant, and it remains uncured for more than five days, the entire debt becomes due and payable. Coffee News USA, Inc. has the right to realize upon the security granted, including the right to sell the franchise.

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.