Is the Craters & Freighters guaranty considered continuing and irrevocable during the term of the agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of, and as an inducement to, the execution of the above Franchise Agreement | |
|---|---|
| ("Agreement") by Craters & Freighters Franchise Company ("Franchisor"), each of the undersigned (each | |
| a "Guarantor" and, collectively, the "Guarantors") hereby personally and unconditionally (1) guarantees | |
| to Company and its affiliates and their successors and assigns, for the term of the Agreement and thereafter | |
| as provided in the Agreement, that ("Franchisee") will punctually pay and | |
| perform each and every undertaking, agreement and covenant set for the in the Agreement and (2) agrees | |
| personally to be bound by, and personally liable for the breach of, each and every provision in this |
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the guaranty provided by the Guarantors is designed to ensure the franchisee's obligations are met throughout the term of the Franchise Agreement. The guaranty extends not only for the duration of the agreement but also thereafter, as specified within the agreement itself.
Specifically, each Guarantor personally and unconditionally guarantees to Craters & Freighters the franchisee's punctual payment and performance of every undertaking, agreement, and covenant outlined in the Franchise Agreement. Furthermore, the Guarantors agree to be personally bound by and liable for any breach of the provisions within the agreement.
This arrangement means that if the franchisee fails to meet their financial or operational obligations, Craters & Freighters can seek recourse directly from the Guarantors. This provides Craters & Freighters with an additional layer of security, ensuring that the terms of the Franchise Agreement are upheld. Prospective franchisees should carefully review the terms of the guaranty and understand the full extent of their obligations and potential liabilities.