What is the name of the attachment that contains Cream's form of individual guarantee?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree and represent that Attachment C to this Agreement completely and accurately describes all of your owners and their interests in you as of the Effective Date. Each of your owners with a 10% or greater ownership interest in your Entity must execute a guarantee in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement
and any ancillary agreements between you and us. Our current form of guarantee is attached herein as Attachment D.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the current form of guarantee that owners with a 10% or greater ownership interest must execute is included as Attachment D to the Franchise Agreement. This attachment contains the Guaranty and Assumption of Obligations.
Attachment D specifies that each guarantor personally and unconditionally guarantees to Cream that the Franchise Owner will punctually pay and perform each and every undertaking, agreement, and covenant set forth in the Franchise Agreement. The guarantor also agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, including the non-competition, confidentiality, and transfer requirements.
Prospective franchisees should carefully review Attachment D with their legal counsel to fully understand the obligations and liabilities they are undertaking by signing the guarantee. This is a standard practice in franchising, as franchisors typically require personal guarantees to ensure that the franchisee fulfills their financial and operational responsibilities under the franchise agreement.