Is the Kitchen Solvers personal guarantee considered continuing and irrevocable during the term of the ADA?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Guarantor consents and agrees that: (i) Guarantor's direct and immediate liability under this Guaranty is joint and several; (ii) Guarantor will render any payment or performance required under the Agreement upon demand if Developer fails or refuses punctually to do so; (iii) liability is not contingent or conditioned upon pursuit by Franchisor of any remedies against Developer or any other person; and (iv) liability is not diminished, relieved or otherwise affected by any extension of time, credit or other indulgence that Franchisor may grant to Developer or to any other person, including the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which is continuing and irrevocable during the term of the ADA.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the personal guarantee provided by the guarantor is indeed designed to be continuing and irrevocable during the term of the ADA (Area Development Agreement). This means that the guarantor's obligations under the guarantee remain in effect throughout the entire duration of the Area Development Agreement, and cannot be revoked or terminated unilaterally by the guarantor.
Specifically, the guarantor consents and agrees that their liability under the Guaranty is joint and several, meaning they are equally responsible for the developer's obligations. The guarantor is obligated to make any payment or performance required under the agreement if the developer fails to do so, upon demand. This liability is not contingent upon Kitchen Solvers pursuing remedies against the developer first, nor is it affected by any extensions of time or credit granted to the developer.
This clause underscores the significant financial commitment and risk undertaken by the guarantor. Prospective guarantors should carefully consider the financial stability and business acumen of the developer, as well as their own financial capacity to cover potential defaults. It is advisable to seek legal counsel to fully understand the implications of providing such a guarantee, especially its continuing and irrevocable nature during the term of the Area Development Agreement with Kitchen Solvers.