What is the Guarantor inducing Desi District Franchise Group to enter into by executing the Guaranty?

According to Desi District's 2024 Franchise Disclosure Document, the Guarantor is inducing Desi District Franchise Group to enter into a Franchise Agreement with the Franchisee. The Guarantor owns an equity interest in the Franchisee and is executing the Guaranty to ensure that Desi District enters into the Franchise Agreement.

By executing the Guaranty, the Guarantor unconditionally guarantees that the Franchisee will pay and perform every obligation, agreement, and covenant outlined in the Franchise Agreement. This guarantee extends to every other liability and obligation the Franchisee owes to Desi District Franchise Group, regardless of whether it is specifically mentioned in the Franchise Agreement.

The Guarantor is obligated to make any payment or provide any performance required under the Franchise Agreement or any other agreement between the Franchisee and Desi District Franchise Group upon demand from Desi District Franchise Group. This ensures that Desi District has recourse to the Guarantor should the Franchisee fail to meet its obligations.