What is the purpose of Exhibit C in the Jack In The Box Disclosure Document?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Developer has obtained expansion approval, if Developer is an existing Jack in the Box franchisee, from Company. Developer represents and warrants that all Owners (as defined in this Section 1.H.) have executed, simultaneously with Developer's execution of this Agreement, the form of Guaranty and Assumption of Franchisee's Obligations (Attachment C). "Owner" means each person or entity that has any indirect or direct equity interest in Developer.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
Based on the 2025 Jack In The Box Franchise Disclosure Document, Attachment C to the Development Agreement is a 'Guaranty and Assumption of Franchisee's Obligations'. This document is executed by all Owners (defined as anyone with a direct or indirect equity interest in the Developer) simultaneously with the Developer's execution of the Development Agreement.
In essence, Attachment C ensures that the Owners of the franchise developer personally guarantee the obligations of the franchisee. This is a common practice in franchising, especially when the franchisee is a legal entity (like a corporation or LLC) rather than an individual. The franchisor, Jack In The Box, seeks to secure the commitment and financial responsibility of the individuals behind the entity.
For a prospective Jack In The Box franchisee, this means that if you are part of a partnership or corporation seeking to develop a franchise, you and your partners will need to sign a guaranty, making you personally liable for the franchise's performance and obligations under the Development Agreement. This is a significant commitment and should be carefully considered with legal and financial counsel, as it puts your personal assets at risk if the franchise fails to meet its obligations.