What is the definition of 'Developer' in the context of the Floyds 99 Guaranty?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of, and as an inducement to, the execution of the above Development Agreement (the "Agreement") by Floyd's 99 Franchising, LLC (the "Franchisor"), each of the undersigned hereby personally and unconditionally:
Guarantees to Franchisor and its affiliates and their respective successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that Developer as that term is defined in the Agreement (the "Developer") shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; and agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement.
Each of the undersigned waives the following:
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, the term 'Developer' within the Guaranty refers to the entity that has entered into the Development Agreement with Floyds 99 Franchising, LLC. The Guaranty ensures that the Developer will fulfill all obligations outlined in the Development Agreement, including financial and performance-based commitments. This means that the individuals signing the Guaranty are personally guaranteeing that the Developer company will adhere to the terms of the agreement.
The Guaranty extends to Floyds 99 Franchising, LLC, its affiliates, and their successors and assigns, covering the entire term of the Development Agreement and beyond, as specified in the agreement. The individuals providing the guaranty are agreeing to be personally bound by and liable for any breaches of the Development Agreement by the Developer. This is a significant commitment, as it puts the personal assets of the guarantors at risk if the Developer fails to meet its obligations.
Furthermore, the individuals signing the Guaranty waive certain rights, indicating they are giving up some legal protections to ensure the enforceability of the Guaranty. This waiver underscores the seriousness of the commitment and the importance Floyds 99 places on ensuring the Developer fulfills its obligations under the Development Agreement. Prospective developers and their guarantors should carefully review the Development Agreement and the Guaranty to fully understand the scope of their obligations and potential liabilities.