What is the effect of the undersigned's signature on the Guaranty regarding the covenants in the Face Foundrie Area Development 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 and 8. 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 Area Developer 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 Area Developer under the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, by signing the Guaranty, the undersigned is also signing the Area Development Agreement related to all covenants. This means the person signing the Guaranty agrees to be personally bound by all the covenants in the Area Development Agreement, including those in Sections 7 and 8. The document emphasizes that the person signing should have read these covenants and sought legal counsel to understand their implications.
This clause ensures that the person providing the guaranty is fully aware of and agrees to the obligations and restrictions placed on the Area Developer. It reinforces the enforceability of the covenants, as the guarantor is directly bound by them. This is a common practice in franchising to ensure that key individuals behind a corporate franchisee are personally invested in upholding the agreement's terms.
It is also clarified that signing the Guaranty does not grant the undersigned any rights to use the Face Foundrie trademarks or system. These rights remain exclusively with the Area Developer as licensed under the Area Development Agreement. This distinction is important to prevent any misunderstanding that the guarantor gains any operational rights simply by providing the guaranty.