For Jack In The Box, how long does the Guaranty remain in effect?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of, and as an inducement to, the execution of the abovementioned Jack in the Box® Development Agreement (the "Agreement") by Different Rules, LLC ("Company"), each of the undersigned and any other parties who sign counterparts of this guaranty (referred to herein individually as a "Guarantor" and collectively as "Guarantors") hereby personally and unconditionally: (a) guarantees to Company, and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that Developer shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, both monetary obligations and other obligations, including without limitation, the obligation to pay costs and legal fees as provided in the Agreement and the obligation to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, including without limitation the provisions of the Agreement relating to competitive activities.
Each Guarantor waives:
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- acceptance and notice of acceptance by Company of the foregoing undertakings; and
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- notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed; and
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- protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; and
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- any right he may have to require that an action be brought against Developer or any other person as a condition of liability; and
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- all rights to payments and claims for reimbursement or subrogation which he may have against Developer arising as a result of his execution of and performance under this guaranty by the undersigned (including by way of counterparts); and
- any and all other notices and legal or equitable defenses to which he may be entitled.
Each Guarantor consents and agrees that:
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, the Guaranty remains in effect for the term of the Development Agreement and thereafter as provided in the Agreement. As an inducement to the execution of the Development Agreement, the Guarantor guarantees to Jack In The Box that the Developer will punctually pay and perform each undertaking, agreement, and covenant set forth in the Development Agreement.
This means that the Guarantor is personally guaranteeing the Developer's obligations under the Development Agreement. This includes monetary obligations, such as paying fees and costs, and other obligations, such as taking or refraining from specific actions. The Guarantor is also agreeing to be personally liable for any breach of the Development Agreement by the Developer.
Furthermore, the Guarantor waives certain rights, including notice of acceptance, demand for payment, and default. They also waive any right to require Jack In The Box to bring an action against the Developer or any other person as a condition of liability. The Guarantor also waives all rights to payments and claims for reimbursement or subrogation against the Developer. This is a significant commitment and should be carefully considered by any potential Guarantor.