Under the Floyds 99 Guaranty and Assumption of Developer's Obligations, what is the effect of the compromise or release of any claims on the guaranty?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall promptly provide Franchisor with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 8 herein and in the Franchise Agreement. In addition, if Developer is an entity, all of the owners of Developer shall sign the Guaranty and Assumption of Developer's Obligations attached hereto as Exhibit II.
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
I am unable to provide information on the effect of the compromise or release of any claims on the guaranty and assumption of developer's obligations for Floyds 99, as this information is not present within the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do mention the 'Guaranty and Assumption of Developer's Obligations' in the context of who must sign it if the developer is an entity. It is attached as Exhibit II.
To fully understand the implications of the Guaranty and Assumption of Developer's Obligations, a prospective Floyds 99 franchisee should carefully review Exhibit II of the FDD.
Specifically, the franchisee should seek clarification from the franchisor regarding the circumstances under which the guaranty may be invoked, the extent of the guarantor's liability, and the impact of any compromise or release of claims on the guarantor's obligations. Understanding these aspects is crucial for assessing the potential financial risks associated with the guaranty.