Under the Cream franchise agreement's Guaranty and Assumption of Obligations, what is the definition of a 'Guarantor'?
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,
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a Guarantor is defined within the context of the Guaranty and Assumption of Obligations attached to either the Franchise Agreement or the Area Development Agreement. The Guaranty is executed by individuals to be effective as of the agreement's effective date.
The Guarantor provides a personal and unconditional guarantee to Jeni's Splendid Ice Creams Franchise, LLC, its successors, and assigns. This guarantee ensures that the Franchise Owner or Area Developer will punctually fulfill every commitment, agreement, and covenant outlined in their respective agreements. The Guarantor also agrees to be personally bound by and liable for any breaches of the agreement's provisions, including monetary obligations and specific actions or inactions related to non-competition, confidentiality, and transfer requirements.
In essence, a Guarantor is an individual who agrees to be responsible for the financial and operational obligations of the Franchise Owner or Area Developer, ensuring that Cream is protected against potential defaults or breaches of contract. This arrangement is common in franchising, especially when the franchisee is a business entity with limited assets, as it provides an additional layer of security for the franchisor.