Does the Crave Cookies Guaranty extend to liabilities and obligations of the Franchisee not specifically contained in the Franchise Agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Guarantor agrees as follows:
- **1.
Guaranty.** Guarantor hereby unconditionally guarantees to Crave Cookies Franchising and its successors and assigns that Franchisee shall pay and perform every undertaking, agreement and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of Franchisee to Crave Cookies Franchising, whether or not contained in the Franchise Agreement.
Guarantor shall render any payment or performance required under the Franchise Agreement or any other agreement between Franchisee and Crave Cookies Franchising upon demand from Crave Cookies Franchising.
Guarantor waives (a) acceptance and notice of acceptance by Crave Cookies Franchising of this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations of Franchisee; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right Guarantor may have to require that an action be brought against Franchisee or any other person or entity as a condition of liability hereunder; (e) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guaranty by the undersigned; (f) any law which requires that Crave Cookies Franchising make demand upon, assert claims against or collect from Franchisee or any other person or entity (including any other guarantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, the Guaranty extends to all liabilities and obligations of the franchisee, whether or not they are specifically outlined in the Franchise Agreement. The guarantor unconditionally guarantees that the franchisee will fulfill every commitment detailed in the Franchise Agreement. This also covers any other responsibilities the franchisee has to Crave Cookies Franchising, regardless of whether those responsibilities are part of the Franchise Agreement.
This means that the guarantor's responsibility isn't limited to just the terms within the Franchise Agreement itself. It extends to any other liabilities or obligations the franchisee might incur with Crave Cookies Franchising. The guarantor must make any payment or fulfill any requirement under the Franchise Agreement or any other agreement between the franchisee and Crave Cookies Franchising upon demand from Crave Cookies Franchising.
The guarantor also waives several rights, including the right to require Crave Cookies Franchising to first pursue action against the franchisee before demanding fulfillment from the guarantor. This waiver covers acceptance and notice of acceptance of the Guaranty, notice of demand for payment, protest and notice of default, and any rights to require action against the franchisee before the guarantor is held liable. The guarantor also relinquishes rights to payments, claims for reimbursement, or subrogation against the franchisee.
This comprehensive guarantee places a significant responsibility on the guarantor, as it covers a broad range of potential liabilities beyond the Franchise Agreement. Prospective franchisees should ensure their guarantors fully understand the extent of this obligation and the potential financial risks involved. Franchisees should discuss with Crave Cookies the types of liabilities that could arise outside of the franchise agreement.