Is there a deadline associated with the Guaranty of Performance for a Coffee News franchise?
Coffee_News Franchise · 2025 FDDAnswer 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)
The 2025 Coffee News Franchise Disclosure Document includes an exhibit for a Guaranty of Performance, which is to be executed by principal stockholders if the franchisee is a corporation, professional corporation, partnership, limited liability partnership, or limited liability company. This guaranty ensures the full performance of the franchisee's obligations under Schedule B/C and the Promissory Note. However, the document does not specify a deadline for providing the Guaranty of Performance.
Without a specified deadline, it is unclear when this guaranty must be provided to Coffee News. Franchisees should clarify with Coffee News when the Guaranty of Performance is due to ensure compliance with the franchise agreement.
Typically, franchisors require such documents to be submitted before or at the time of signing the franchise agreement to ensure all parties understand their obligations from the outset. Prospective Coffee News franchisees should seek explicit clarification from the franchisor regarding the timing and requirements for submitting the Guaranty of Performance to avoid potential misunderstandings or delays in the franchise process.