Can the form of the re-executed guaranty for a Marble Slab Creamery franchise be different from Exhibit D?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
All present and future Owners of a 10% or more (directly or indirectly), in the aggregate, of the Equity or voting rights in Applicant, will execute a written guaranty substantially in the form attached hereto as Exhibit D, personally, irrevocably and unconditionally guaranteeing, jointly and severally, with all other guarantors, the full payment and performance of Applicant's obligations to Franchisor and to Franchisor's Affiliates. For purposes of determining whether said 10% threshold is satisfied, holdings of spouses (and family members who live in the same household) and Affiliates shall be aggregated. Upon each transfer or assignment of an interest in Applicant, or other change in ownership interests in Applicant, and at any other time upon Franchisor's request, said holders shall re-execute a written guaranty substantially in the form attached hereto as Exhibit D, or in such other form prescribed by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, all present and future owners of 10% or more of the equity or voting rights in the applicant's business must execute a written guaranty. This guaranty ensures the full payment and performance of the applicant's obligations to Marble Slab Creamery and its affiliates. The initial guaranty must be substantially in the form attached as Exhibit D.
Upon each transfer or assignment of interest in the applicant's business, or any other change in ownership, the holders must re-execute a written guaranty. While the initial guaranty must be substantially similar to Exhibit D, the re-executed guaranty can be in a different form if prescribed by Marble Slab Creamery.
This means that while the initial guaranty provides a standard form, Marble Slab Creamery retains the right to modify the guaranty form for subsequent re-executions, potentially to address specific circumstances or legal requirements at the time of the transfer or ownership change. As a prospective franchisee, it is important to understand the conditions under which a re-executed guaranty might differ from the original and what specific changes Marble Slab Creamery might require.