Does a payment made to Floyds 99 under the Development Agreement affect or impair the 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)
Based on the 2025 Floyds 99 Franchise Disclosure Document, the Guaranty and Assumption of Developer's Obligations outlines the guarantor's responsibilities. Specifically, the guarantor unconditionally guarantees that the Developer will fulfill all obligations under the Development Agreement, including punctual payments. This obligation extends for the term of the agreement and beyond, as specified within the agreement itself. The guarantor also agrees to be personally bound by and liable for any breaches of the Development Agreement's provisions.
The document also states that the undersigned waives certain rights. However, the specific rights waived are not detailed in the provided excerpt.
Therefore, while the guarantor is responsible for ensuring all payments are made, the provided excerpt does not specify whether making a payment under the Development Agreement would affect or impair the Guaranty itself. To fully understand the implications, a prospective Floyds 99 franchisee should carefully review the complete Guaranty and Assumption of Developer's Obligations (Exhibit II) and seek legal counsel.