Under the Guaranty and Non-Compete Agreement, what does the Guarantor unconditionally guarantee regarding the Franchisee's obligations 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's responsibilities are outlined in the Guaranty and Non-Compete Agreement. The Guarantor unconditionally guarantees that the Franchisee will fulfill all obligations, agreements, and covenants detailed in the Franchise Agreement. This guarantee extends to every liability and obligation the Franchisee owes to Crave Cookies, regardless of whether it's specifically mentioned in the Franchise Agreement.
This means that if the Franchisee fails to meet any financial or performance obligations, Crave Cookies can seek recourse directly from the Guarantor. The Guarantor is responsible for ensuring that all payments and required actions are completed as demanded by Crave Cookies under the Franchise Agreement or any other agreement between the Franchisee and Crave Cookies Franchising.
The Guarantor also waives several rights, including the right to receive notices of acceptance, demands for payment, or default. They also waive the right to require Crave Cookies to first pursue action against the Franchisee before seeking fulfillment from the Guarantor. This ensures that Crave Cookies can directly and immediately enforce the guarantee without needing to exhaust other remedies first. This is a standard practice in franchising to provide additional security to the franchisor.
Furthermore, the Guarantor's liability is not affected by any amendments to the Franchise Agreement, extensions of time granted to the Franchisee, or acceptance of partial payments. This means the Guarantor remains fully responsible even if the terms of the agreement change or Crave Cookies makes concessions to the Franchisee. If multiple Guarantors sign the Guaranty, each will have joint and several liability.