Are there any exceptions to the Guarantor's obligations under the Cream franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor consents and agrees that: (1) Guarantor's direct and immediate liability under this Guaranty will be joint and several, both with Franchise Owner and among other guarantors; (2) Guarantor will render any payment or performance required under the Agreement upon demand if Franchise Owner fails or refuses punctually to do so; (3) this liability will not be contingent or conditioned upon our pursuit of any remedies against Franchise Owner or any other person; (4) this liability will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence which we may from time to time grant to Franchise Owner or to any other person, including the acceptance of any partial payment or performance or the compromise or release of any claims, or any amendment, waiver or restatement to any terms of the Agreement, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the term of the Agreement; and (5) at our request, each Guarantor shall present updated financial information to us as reasonably necessary to demonstrate such Guarantor's ability to satisfy the financial obligations of Franchise Owner under the Agreement.
Each Guarantor waives: (i) all rights to payments and claims for reimbursement or subrogation which any Guarantor may have against Franchise Owner arising as a result of the Guarantor's execution of and performance under this Guaranty; and (ii) acceptance and notice of acceptance by us of Guarantor's undertakings under this Guaranty, notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed, protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed, and any other notices to which he or she may be entitled.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the Guarantor's obligations are comprehensive and designed to ensure the franchisor is protected against default or non-performance by the franchisee. The Guarantor's liability is direct, immediate, joint, and several with the Franchise Owner and any other guarantors. This means Cream can pursue any Guarantor directly without first seeking remedies from the Franchise Owner.
The Guarantor's obligations are not contingent upon Cream pursuing other remedies, and they are not diminished by any extensions of time, credit, or indulgences that Cream may grant to the Franchise Owner. This includes accepting partial payments, compromising claims, or amending the Franchise Agreement. The Guaranty remains continuing and irrevocable during the term of the Agreement.
The Guarantor also waives certain rights, including rights to payments and claims for reimbursement or subrogation against the Franchise Owner. They also waive the right to receive notices, such as notice of acceptance of the guaranty or notice of default. The Guarantor may be required to provide updated financial information to demonstrate their ability to meet the Franchise Owner's financial obligations under the Agreement. These waivers and obligations underscore the comprehensive nature of the Guarantor's commitment to ensuring the Franchise Owner's performance under the Cream franchise agreement.