When must the Continuing Guaranty attached as Attachment C be executed for an Hck Hot Chicken franchise?
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:
1. Guaranty of Obligations.
- 1.1 Guarantor unconditionally, absolutely and irrevocably guarantees the full and prompt payment and performance when due, of all obligations of Franchisee to Franchisor and its affiliates, however created, arising or evidenced, whether direct or indirect, absolute or contingent, or now or in the future existing or due or to become due, including, without limitation, under or in connection with that certain Franchise Agreement dated as of even date herewith (the "Franchise Agreement") and each of the documents, instruments and agreements executed and delivered in connection with the Franchise Agreement or this continuing guaranty, as each may be modified, amended, supplemented or replaced from time to time (all such obligations are referred to collectively as the "Obligations"), and all documents evidencing or securing any of the Obligations.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, the Continuing Guaranty (Attachment C) must be executed in consideration of Hot Chikn Kitchn LLC granting a franchise or approving a transfer to the franchisee. The guarantor, who is the franchisee owner, agrees to the terms outlined in the guaranty.
Specifically, the Continuing Guaranty is tied to the Franchise Agreement, dated as of even date, meaning it is executed concurrently with the Franchise Agreement. The guarantor is responsible for the franchisee's obligations, including payments and performance, under the Franchise Agreement and related documents. This obligation extends to any modifications or amendments made to the Franchise Agreement over time.
In essence, the Continuing Guaranty ensures that if the franchisee fails to meet their financial or performance obligations, the guarantor will be held responsible for fulfilling those obligations. This provides Hck Hot Chicken with an additional layer of security and assurance that the terms of the Franchise Agreement will be upheld.