What is the effective date of the Guaranty and Assumption of Obligations for the Cream franchise?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
tion 15D or determining whether to do so | |
ATTACHMENT C TO FRANCHISE AGREEMENT
PREMISES AND PROTECTED TERRITORY
| sell any products and services of any kind and in any manner from | your | Shop and/or using the | |
|---|---|---|---|
| Marks, unless we direct you otherwise in connection with our exercise of our option to purchase |
ATTACHMENT D TO FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given by each of the undersigned persons indicated below who have executed this Guaranty (each a "Guarantor") to be effective as of the Effective Date of the Agreement (defined below).
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (the "Agreement") on this date by Jeni's Splendid Ice Creams Franchise, LLC ("us," "we," or "our"), each Guarantor personally and unconditionally (a) guarantees to us and our successors and assigns, for the term of the Agreement and afterward as provided in the Agreement, that ________________________________________ ("Franchise Owner") will punctually pay and perform each and every undertaking, agreement, an
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the Guaranty and Assumption of Obligations for Cream is effective as of the Effective Date of the Franchise Agreement. This means the guaranty becomes binding on the date the Franchise Agreement comes into effect.
For a prospective Cream franchisee, this implies that any individual signing the Guaranty and Assumption of Obligations (typically owners with a significant stake in the franchise entity) is immediately bound by its terms once the Franchise Agreement is in force. This guaranty ensures that Cream can seek recourse directly from the guarantor(s) if the franchise owner fails to meet their financial or operational obligations under the agreement.
The guarantor's obligations are comprehensive, covering all aspects of the Franchise Agreement, including monetary obligations, required actions, and restrictions like non-competition and confidentiality. The guaranty remains in effect for the entire term of the agreement and even after its termination, as specified in the agreement. This continuing obligation is a standard practice in franchising, designed to protect the franchisor's interests even after the franchise relationship ends.
It is important for potential guarantors to fully understand the implications of this document, as they are personally liable for the franchise's performance. They should seek legal counsel to review the Guaranty and Assumption of Obligations and the Franchise Agreement to fully grasp their responsibilities and potential liabilities.