What is the effect of the undersigned's signature on the Face Foundrie Guaranty regarding the covenants in the Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned hereby acknowledges and expressly agrees to be personally bound by all of the covenants contained in the Agreement, including, without limitation, those covenants contained in Sections 7, 11, 13, 14, 18, and 19. Signature by the undersigned on this Guaranty constitutes the undersigned's signature on the Agreement related to all covenants. The undersigned asserts that he or she has read such covenants, been advised by counsel regarding their effect, and hereby affirmatively agree to them in order to secure the rights granted to Franchisee by Franchisor under the Agreement. The undersigned further acknowledges and agrees that this Guaranty does not grant the undersigned any right to use the "Face Foundrié" marks or system licensed to Franchisee under the Agreement.
This Guaranty shall terminate upon the termination or expiration of the Agreement, except that all obligations and liabilities of the undersigned which arose from events which occurred on or before the effective date of such termination shall remain in full force and effect until satisfied or discharged by the undersigned, and all covenants which by their terms continue in force after the expiration or termination of the Agreement shall remain in force according to their terms. Upon the death of an individual guarantor, the estate of such guarantor shall be bound by this Guaranty, but only for defaults and obligations hereunder existing at the time of death; and the obligations of the other guarantors, if any, will continue in full force and effect.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, signing the Guaranty means the undersigned is also signing the Franchise Agreement regarding all covenants. By signing the Guaranty, the individual acknowledges they have read the covenants, received legal counsel about their implications, and agree to them to secure the rights granted to the franchisee by Face Foundrie under the Franchise Agreement.
This means the guarantor is personally bound by the obligations and responsibilities outlined in the Franchise Agreement, specifically Sections 7, 11, 13, 14, 18, and 19. These sections likely cover key aspects of the franchise relationship, such as operational standards, intellectual property, and termination conditions. The guarantor is confirming they understand and agree to these terms on behalf of the franchisee.
However, the document clarifies that signing the Guaranty does not give the undersigned any rights to use Face Foundrie's trademarks or system. The obligations under the Guaranty remain even if the Franchise Agreement ends, especially for events that happened before the termination date. If the guarantor dies, their estate is responsible for defaults and obligations existing at the time of death, while the obligations of any other guarantors remain in effect.