Are the Franchisee's payment obligations to Mrcool under the Ancillary Agreements also personally guaranteed?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Franchise Agreement.
6. Personal Guaranty of Franchise Agreement and Financial Obligations.
To secure Franchisee's financial obligations under the Franchise Agreement and all ancillary agreements executed by Franchisee in connection with the Franchise Agreement, including, but not limited to, any agreement for the purchase of goods or services from us or an affiliate of ours (collectively the "Ancillary Agreements") you individually, jointly and severally, and personally and unconditionally:
- (a) guarantee to us and our successor and assigns, that Franchisee shall punctually satisfy and pay all of Franchisee's payment and other obligations under the Franchise Agreement;
- (b) guarantee to us and our successor and assigns, that Franchisee shall punctually satisfy and pay all of Franchisee's payment and other obligations under the Ancillary Agreements;
- (c) agree, at all times, to be personally bound by and personally liable for each and every fee, payment and monetary obligation due from Franchisee to us pursuant to the terms of the Franchise Agreement (including, but not limited to, the fee obligations of Article 5 of the Franchise Agreement, the advertising obligations of Article 9 of the Franchise Agreement, and the indemnification obligations of Article 10 of the Franchise Agreement);
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the franchisee's payment obligations under the Ancillary Agreements are personally guaranteed. The franchisee must guarantee that they will satisfy all payment and other obligations under the Ancillary Agreements.
The franchisee must agree to be personally bound by and liable for all fees, payments, and monetary obligations due to Mrcool under the Ancillary Agreements. They must also guarantee the payment of all fees, payments, and monetary obligations that are or may become due under the terms of the Ancillary Agreements.
Furthermore, the document states that the guarantor's liability is joint and several with the franchisee and all other signatories. The guarantor must make any payment required under the Franchise Agreement and the Ancillary Agreements upon demand if the franchisee fails to do so punctually. This guarantee remains effective during the term of the Franchise Agreement and Ancillary Agreements, even after termination, expiration, or transfer, to the extent that any financial obligations survive.