How long does the Monicals Pizza Guaranty Agreement remain in effect?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guaranty Agreement, which is to be governed by and construed in accordance with the laws of the State of Illinois, shall also bind Guarantor's legal or personal representatives, heirs, successors and assigns (as the case may be) and inure to the benefit of Franchisor and its Affiliates and their successors and assigns and any other person or entity at any time having the rights of Franchisor or any Affiliate under the Franchise Agreement and each Related Agreement.
Guarantor will forthwith pay to Franchisor and/or an Affiliate, as applicable, all attorney's fees and disbursements incurred by Franchisor and/or an Affiliate, as applicable, in connection with any breach or default by Franchisee under the Franchise Agreement or any Related Agreement and/or the enforcement of this Guaranty Agreement, in each instance whether or not suit is brought (and if suit is brought, through appeals and collection efforts).
Any sums not paid to Franchisor or any Affiliate when due hereunder will bear interest at the rate of 18% per annum, from the due date until full payment is received by Franchisor or such Affiliate.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the Guaranty Agreement remains in effect and binds the guarantor's legal or personal representatives, heirs, successors, and assigns. It also benefits Monicals Pizza and its affiliates, their successors and assigns, and any other person or entity with rights under the Franchise Agreement or related agreements. This means the obligations under the guaranty extend beyond the initial guarantor to their estate and any entities that take over the franchise rights.
This extended obligation is significant for potential guarantors, as their responsibility for the franchisee's obligations continues even after their death or if they transfer their interest. The agreement is governed by Illinois law, which adds a layer of legal specificity. Furthermore, the guarantor is responsible for all attorney's fees and disbursements incurred by Monicals Pizza or its affiliates related to any breach or default by the franchisee or the enforcement of the Guaranty Agreement, regardless of whether a lawsuit is filed.
Interest accrues on any unpaid sums at a rate of 18% per annum from the due date until full payment is received by Monicals Pizza or its affiliate. This high-interest rate underscores the importance of timely payments and the potential financial burden on the guarantor in case of default. The comprehensive nature of this agreement ensures that Monicals Pizza has recourse to recover any losses resulting from a franchisee's non-compliance or financial instability, making it a critical component of the franchise relationship.