What obligations of the Hck Hot Chicken franchisee are guaranteed by the personal guaranty?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Records, and Entity records (e.g., Articles of | etc.) | | | | Incorporation, | Agreement, | are | | | | Bylaws, | Partnership | maintained | | | | Operating | Agreement, | is: | | |
ATTACHMENT C
CONTINUING GUARANTY
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. This continuing guaranty (this "Continuing Guaranty") is a guaranty of payment and performance when due and not of collection.
- 1.2 In the event of any default by Franchisee in making payment of, or default by Franchisee in performance of, any of the Obligations, Guarantor agrees on demand by Franchisor to pay and perform all of the Obligations as are then or thereafter become due and owing or are to be performed under the terms 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 personal guaranty ensures the franchisee's full and prompt payment and performance of all obligations to Hck Hot Chicken and its affiliates. This includes all obligations, whether direct or indirect, absolute or contingent, existing now or in the future. These obligations are created, arise, or are evidenced under the Franchise Agreement and related documents. The guaranty extends to any modifications, amendments, supplements, or replacements made to these agreements over time. This is a continuing guaranty of payment and performance, not just of collection.
In the event the Hck Hot Chicken franchisee defaults on any payment or performance obligations, the guarantor must, upon demand from Hck Hot Chicken, fulfill those obligations. This includes paying all amounts due and performing all actions required under the terms of the original obligations. The guarantor is also responsible for covering all expenses, including reasonable attorney's fees, incurred by Hck Hot Chicken in its efforts to collect the obligations or enforce the guaranty.
This type of personal guarantee is standard practice in franchising. It ensures that Hck Hot Chicken has recourse to the personal assets of the franchisee (or the franchisee's owners) if the franchise entity fails to meet its financial or operational responsibilities. Prospective franchisees should carefully review the Franchise Agreement and Continuing Guaranty to fully understand the scope of the obligations being guaranteed and the potential financial risks involved.