Who is considered the 'Guarantor' in the Continuing Guaranty for a Hck Hot Chicken franchise?

According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the 'Guarantor' in the Continuing Guaranty is defined as the franchisee owners. Specifically, if the franchisee is an entity, the owners of that entity must guarantee the franchisee's obligations to Hck Hot Chicken. These owners are jointly and severally responsible, meaning each owner is fully liable for all obligations.

This requirement ensures that Hck Hot Chicken has recourse to the personal assets of the franchisee owners should the franchise entity fail to meet its financial or operational obligations. The Continuing Guaranty covers all obligations of the franchisee to Hck Hot Chicken and its affiliates, including those under the Franchise Agreement and related documents. This includes payments and performance of duties.

The guarantor's obligations are unconditional, absolute, and irrevocable, meaning they cannot be canceled or withdrawn. If the franchisee defaults, the guarantor must fulfill the obligations, including covering expenses Hck Hot Chicken incurs to collect what is owed. This arrangement is typical in franchising, as it provides an additional layer of security for the franchisor.

Prospective Hck Hot Chicken franchisees should carefully review the Continuing Guaranty with their legal and financial advisors to fully understand the extent of their personal liability. They should also assess their financial capacity to cover potential defaults by the franchise entity. Franchisees should also note that this requirement is in place to protect Hck Hot Chicken from financial loss due to franchisee default.