Under the Crave Cookies Guaranty, what does the Guarantor unconditionally guarantee to Crave Cookies Franchising?
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' 2025 Franchise Disclosure Document, the Guarantor provides an unconditional guarantee to Crave Cookies Franchising that the Franchisee will fulfill all obligations outlined in the Franchise Agreement. This includes ensuring that the Franchisee makes all required payments and adheres to every agreement and covenant detailed within the Franchise Agreement. The guarantee extends to any other liabilities or obligations the Franchisee owes to Crave Cookies Franchising, regardless of whether they are specifically mentioned in the Franchise Agreement.
This means that if the Franchisee fails to meet their financial or operational responsibilities, Crave Cookies Franchising can seek recourse directly from the Guarantor. The Guarantor is responsible for rendering any payment or performance required under the Franchise Agreement or any other agreement between the Franchisee and Crave Cookies Franchising upon demand. This ensures that Crave Cookies Franchising has a direct line of responsibility and payment should the Franchisee default.
The Guarantor also waives several rights, including the right to receive notices of acceptance, demands for payment, or notices of default. They also waive any right to require Crave Cookies Franchising to first pursue action against the Franchisee before seeking fulfillment from the Guarantor. This waiver simplifies and expedites the process for Crave Cookies Franchising to enforce the guarantee. The Guarantor is essentially agreeing to be immediately and fully liable for the Franchisee's obligations without the need for Crave Cookies Franchising to exhaust other remedies first.
Furthermore, the Guarantor agrees that their liability will not be affected by any amendments to the Franchise Agreement, extensions of time granted to the Franchisee, or acceptance of partial payments. This ensures that the Guarantor's obligations remain intact even if the terms of the agreement between Crave Cookies Franchising and the Franchisee change over time. The Guaranty is governed by the laws of Utah, and the Guarantor is responsible for all costs incurred by Crave Cookies Franchising in enforcing the Guaranty, including reasonable attorney fees. If there are multiple Guarantors, they will have joint and several liability, meaning each Guarantor is fully responsible for the entire obligation.