For what term does the guaranty apply to the Fat Shack Development Agreement?

According to Fat Shack's 2025 Franchise Disclosure Document, the guaranty applies for the term of the Development Agreement, including renewals. As an inducement to Fat Shack's execution of the Development Agreement, the guarantor personally and unconditionally guarantees that the franchisee will punctually pay and perform every undertaking, agreement, and covenant in the Development Agreement. The guarantor also agrees to be personally bound by, and personally liable for the breach of, each provision in the Development Agreement.

This means that if the franchisee fails to meet their obligations under the Development Agreement, the guarantor is personally responsible for ensuring those obligations are met. This could include financial obligations, such as paying fees or fulfilling development schedules, as well as non-financial obligations, such as adhering to Fat Shack's standards and operating procedures. The guarantor's liability extends to any renewals of the Development Agreement, providing Fat Shack with ongoing security.

The guarantor waives certain rights, including the right to require Fat Shack to take action against the franchisee before pursuing the guarantor. The guarantor also consents to joint and several liability, meaning Fat Shack can pursue the guarantor directly without first pursuing the franchisee. This arrangement protects Fat Shack by ensuring there is a responsible party who is fully committed to the franchisee's performance under the Development Agreement.