What is the relationship between the Guarantor and the Franchisee for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
usiness is: | | | GOLDMEMBER, LLC | | | By: | | | Name: | | | Title: | | | Date: |
Attachment 3 to Franchise Agreement
GUARANTY AND NON-COMPETE AGREEMENT
This Guaranty and Non-Compete Agreement (this "Guaranty") is executed by the undersigned person(s) (each, a "Guarantor") in favor of Goldmember, LLC, a Idaho limited liability company ("Crown Gold Franchising").
| Franchise Agreement | for the franchise of a Crown Gold Exchange | |--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------| | with Crown Gold Franchising | business (the "Franchise Agreement"; capitalized terms used but not defined in this Guaranty have | | the meanings given in the Franchise Agreement). | Guarantor owns an equity interest in Franchisee. | | Guarantor is executing this Guaranty in order to induce Crown Gold Franchising | to enter into the | | Franchise Agreement. | | Guarantor agrees as follows:
- 1. Guaranty. Guarantor hereby unconditionally guarantees to Crown Gold Franchising and its successors and assigns that Franchisee shall pay and perform every undertaking, agreement and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of Franchisee to Crown Gold Franchising, whether or not contained in the Franchise Agreement. Guarantor shall render any payment or performance required under the Franchise Agreement or any other agreement between Franchisee and Crown Gold Franchising upon demand from Crown Gold Franchising. Guarantor waives (a) acceptance and notice of acceptance by Crown Gold Franchising of this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations of Franchisee; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right Guarantor may have to require that an action be brought against Franchisee or any other person or entity as a condition of liability hereunder; (e) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guaranty by the undersigned; (f) any law which requires that Crown Gold Franchising make demand upon, assert claims against or collect from Franchisee or any other person or entity (including any other guarantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
- 2. Confidential Information. With respect to all Confidential Information Guarantor shall (a) adhere to all security procedures prescribed by Crown Gold Franchising for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business; (c) not use any such information in any other business or in any manner not specifically authorized or approved in writing by Crown Gold Franchising, (d) exercise the highest degree of diligence and make every effort to maintain the confidentiality of all such information during and after the term of the Franchise Agreement, (e) not copy or otherwise reproduce any Confidential Information, and (f) promptly report any unauthorized disclosure or
use of Confidential Information. Guarantor acknowledges that all Confidential Information is owned by Crown Gold Franchising or its affiliates (except for Confidential Information which Crown Gold Franchising licenses from another person or entity). Guarantor acknowledges that all customer data generated or obtained by Guarantor is Confidential Information belonging to Crown Gold Franchising. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
**3.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the Guarantor owns an equity interest in the Franchisee. The Guarantor executes a guaranty to induce Crown Gold Franchising to enter into the Franchise Agreement. This indicates that the Guarantor is guaranteeing the Franchisee's obligations to Crown Gold Exchange. If the Franchisee is an entity, each owner must sign a personal guaranty of the Franchisee's obligations to Crown Gold Franchising.
The Guarantor unconditionally guarantees that the Franchisee will pay and perform every undertaking, agreement, and covenant in the Franchise Agreement. This also extends to every other liability and obligation of the Franchisee to Crown Gold Franchising, regardless of whether it's in the Franchise Agreement. The Guarantor must make any payment or performance required under the Franchise Agreement or any other agreement between the Franchisee and Crown Gold Franchising upon demand from Crown Gold Franchising.
The Guarantor also agrees to several waivers, including acceptance and notice of acceptance of the Guaranty by Crown Gold Franchising, notice of demand for payment of any indebtedness or nonperformance by the Franchisee, and any right to require that an action be brought against the Franchisee before the Guarantor is held liable. The Guarantor also waives any rights to payments and claims for reimbursement or subrogation against the Franchisee and any legal or equitable defenses they may be entitled to.
Furthermore, the Guarantor's liability will not be affected by any amendment to the Franchise Agreement, any extension of time granted to the Franchisee, or the acceptance of any partial payment or performance. The Guaranty is governed by the laws of Idaho, and any disputes will be resolved according to Article 17 of the Franchise Agreement. The Guarantor is also subject to certain covenants not to compete, both during the term of the Franchise Agreement and for two years after it expires or is terminated, within a specified radius of the Franchisee's territory or any other Crown Gold Exchange business.