What form must the continuing guaranty for an Hck Hot Chicken franchise take?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's current form of EFT authorization and credit card authorization is attached to the Franchise Disclosure Document in Exhibit I. Franchisee shall also, in addition to those terms and conditions set forth in the HCK Hot Chicken Brand Standards Manual, maintain a single bankaccount for such payments and shall maintain such minimum balance in such account as Franchisor may reasonably specify from time to time. Franchisee shall not alter or
ATTACHMENT C. CONTINUING GUARANTY
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, the current form of continuing guaranty is attached to the Franchise Disclosure Document in Exhibit I. Attachment C to the franchise agreement is also a continuing guaranty.
This means that if a franchisee is an entity (like a corporation or LLC) rather than an individual, Hck Hot Chicken requires a personal guaranty from the owner(s) to ensure the franchise's obligations are met. This is a common practice in franchising, as it provides the franchisor with additional security.
A prospective Hck Hot Chicken franchisee should carefully review Exhibit I and Attachment C to understand the full scope of the guaranty, including what obligations are covered and what assets could be at risk. They should also consult with an attorney or financial advisor to assess the implications of signing a continuing guaranty.