Is the Kitchen Solvers guarantor's liability independent of the liability of the developer?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Guarantor hereby consents and agrees that:
- (a) Guarantor's liability under this undertaking is direct, immediate, and independent of the liability of, and is joint and several with, Developer and the other parties who may be held liable for Developer's performance of the ADA;
- (b) Guarantor will render any payment or performance required under the ADA upon demand if Developer fails or refuses punctually to do so;
- (c) Franchisor is entitled to proceed against Guarantor and Developer jointly and severally, or Franchisor may, at its option, proceed against Guarantor, without having commenced any action or having obtained any judgment against Developer; and
- (d) Guarantor agrees to pay all reasonable attorneys' fees and all costs and other expenses incurred in any collection or attempt to collect amounts due pursuant to this undertaking (including any amounts expended in pursuing payment from Developer) or any negotiations relative to the obligations hereby guaranteed or in enforcing this undertaking against Guarantor.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the guarantor's liability is indeed independent of the developer's liability. The guarantor's obligations are direct, immediate, and function jointly and severally with the developer. This means Kitchen Solvers can pursue the guarantor directly without first having to take action or obtain a judgment against the developer.
The guarantor is obligated to fulfill any payment or performance required under the Area Development Agreement (ADA) immediately upon demand if the developer fails to do so punctually. Kitchen Solvers has the right to proceed against both the guarantor and the developer jointly, or at its discretion, pursue the guarantor independently.
Furthermore, the guarantor is responsible for covering all reasonable attorney's fees, costs, and other expenses incurred by Kitchen Solvers in any effort to collect amounts due under the agreement. This includes expenses related to pursuing payment from the developer, negotiations related to the guaranteed obligations, or enforcing the undertaking against the guarantor. The guarantor also waives any right to require Kitchen Solvers to first bring an action against the developer before pursuing the guarantor.