What specific covenants in the Floyds 99 Franchise Agreement is the guarantor bound by?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
GUARANTY AND ASSUMPTION OF FRANCHISEE'S OBLIGATIONS
In consideration of, and as an inducement to, the execution of the above Franchise Agreement (the "Agreement") by Floyd's 99 Franchising, LLC (the "Franchisor"), each of the undersigned hereby personally and unconditionally:
Guarantees to the Franchisor and its affiliates and their respective successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that the Franchisee as that term is defined in the Agreement (the "Franchisee") 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:
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- Acceptance and notice of acceptance by the Franchisor and its affiliates of the foregoing undertakings;
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- Notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
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- Protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
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- Any right he or she may have to require that any action be brought against the Franchisee or any other person as a condition of liability; and
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- Any and all other notices and legal or equitable defenses to which he or she may be entitled.
Each of the undersigned consents and agrees that:
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the guarantor is bound by each and every undertaking, agreement, and covenant set forth in the Franchise Agreement. This means the guarantor assures that the franchisee will punctually pay and perform all obligations outlined in the agreement for its entire term, including any extensions or renewals.
The guarantor also agrees to be personally liable for any breaches of the Franchise Agreement. This personal liability extends to all provisions within the agreement, meaning the guarantor's personal assets are at risk if the franchisee fails to meet their obligations. The guarantor essentially steps into the shoes of the franchisee in terms of responsibility for upholding the agreement.
Furthermore, the guarantor waives several rights, including the right to receive notices of acceptance, demand for payment, or default. They also waive the right to require the franchisor to first pursue action against the franchisee before seeking recourse from the guarantor. This waiver streamlines the process for Floyds 99 to seek remedies directly from the guarantor in case of any breach or non-performance by the franchisee, making the guarantor's commitment very direct and immediate.