Who acts as the Guarantor for Hck Hot Chicken under the continuing guaranty agreement?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
FOR VALUE RECEIVED, and in consideration of Hot Chikn Kitchn LLC, a Florida limited liability company ("Franchisor"), [granting a franchise][or][approving a transfer] to [FRANCHISEE], a [STATE ENTITY TYPE] ("Franchisee"), the undersigned, [FRANCHISEE OWNERS] (jointly and severally, "Guarantor"), agree as follows:
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Guarantor under the Continuing Guaranty agreement is identified as the franchisee owners. Specifically, the document states that the undersigned, referred to as '[FRANCHISEE OWNERS]' jointly and severally, are designated as the 'Guarantor.'
This means that the individuals or entities who own the franchise are responsible for guaranteeing the franchisee's obligations to Hck Hot Chicken. This arrangement ensures that Hck Hot Chicken has recourse to the franchisee owners' assets if the franchise entity fails to meet its financial or performance obligations under the Franchise Agreement.
The Continuing Guaranty is attached to the Franchise Agreement as Attachment C. It stipulates that the Guarantor unconditionally guarantees the full payment and performance of all the franchisee's obligations to Hck Hot Chicken and its affiliates. This includes any debts, liabilities, or responsibilities arising from the Franchise Agreement and related documents.
In practical terms, if the Hck Hot Chicken franchisee defaults on payments or fails to fulfill other obligations, the franchisee owners (Guarantor) become personally liable for those debts and responsibilities. They may be required to cover outstanding payments, rectify breaches of contract, and cover any expenses Hck Hot Chicken incurs in enforcing the agreement. This personal guarantee adds a layer of security for Hck Hot Chicken, ensuring that the obligations are met even if the franchise business encounters financial difficulties.