During the term of the Craters & Freighters agreement, is the guaranty continuing and irrevocable?
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, if a guarantor is required, they must personally and unconditionally guarantee the franchisee's obligations. This guarantee extends for the entire term of the Franchise Agreement and continues as specified within the agreement.
Specifically, the guarantor commits to ensuring that the franchisee punctually pays and performs all obligations, agreements, and covenants outlined in the Franchise Agreement. Additionally, the guarantor agrees to be personally bound by and liable for any breaches of the provisions within the agreement.
This arrangement means that the guarantor's responsibility is not limited to a specific event or time but is an ongoing commitment tied to the franchisee's adherence to the Franchise Agreement. A prospective Craters & Freighters franchisee should carefully review the terms of the guaranty and understand the full extent of their obligations and potential liabilities, as well as those of any guarantor, throughout the duration of the franchise agreement.