Does the Crisp & Green personal guaranty apply to modifications of the Area Development Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| In consideration of the execution of the Area Development Agreement (the "Agreement") | |
|---|---|
| between CRISP & | |
| GREEN FRANCHISING LLC | |
| ("we" or "us") and (the | |
| "Developer"), dated, and for other good and valuable consideration, the | |
| undersigned, for themselves, their heirs, successors, and assigns, do jointly, individually, and | |
| severally hereby become surety and guarantor for the payment of all amounts and the performance | |
| of the covenants, terms, and conditions in the Agreement, to be paid, kept, and performed by the | |
| Developer, including without limitation the dispute resolution provisions of the Agreement. |
Further, the undersigned, individually and jointly, hereby agree to be personally bound by each and every condition and term contained in the Agreement and agree that this Personal Guaranty will be construed as though the undersigned and each of them executed an Area Development Agreement containing the identical terms and conditions of the Agreement.
The undersigned waive: (1) notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the personal guaranty does apply to modifications of the Area Development Agreement. The guarantor agrees to be personally bound by every term in the Area Development Agreement.
The guarantor also consents and agrees that their liability will not be affected by the amendment or extension of the Area Development Agreement, even without notice to the guarantor. This means that any changes made to the Area Development Agreement will still be covered by the personal guaranty, regardless of whether the guarantor is informed of these changes.
This clause protects Crisp & Green in the event of modifications to the Area Development Agreement. The guarantor's obligations remain even if the agreement is altered, ensuring continuous financial backing for the franchisee's performance. Prospective franchisees should carefully consider the implications of this clause and seek legal counsel to fully understand their obligations under the personal guaranty, especially concerning potential modifications to the Area Development Agreement.