Does the Franchisee's personal guarantee to Mrcool cover monetary obligations that may become due in the future?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) do, at all times, hereby personally guarantee payment of each and every fee, payment and monetary obligation due or that may become 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; and
- (f) do, at all times, hereby personally guarantee payment of each and every fee, payment and monetary obligation due or that may become due from Franchisee to us pursuant to the terms of the Ancillary Agreements.
You waive: (a) acceptance and notice of acceptance by us of the foregoing undertakings; (b) notice of demand for payment of any indebtedness guaranteed; (c) protest and notice of default to any party with respect to the indebtedness guaranteed; (d) any right you may have to require that an action be brought against Franchisee or any other person as a condition of liability; and (e) the defense of the statute of limitations in any action hereunder or for the collection of any indebtedness hereby guaranteed.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, the franchisee's personal guarantee extends to monetary obligations that may arise in the future. Specifically, the franchisee guarantees that they will ensure the franchisee punctually satisfies all payment and other obligations under both the Franchise Agreement and any Ancillary Agreements.
The personal guarantee means the franchisee is personally bound and liable for all fees, payments, and monetary obligations due from the franchisee to Mrcool. This includes, but is not limited to, fee obligations outlined in Article 5, advertising obligations in Article 9, and indemnification obligations in Article 10 of the Franchise Agreement. The guarantee also extends to all fees, payments, and monetary obligations due to Mrcool and/or its affiliates under the Ancillary Agreements.
Furthermore, the franchisee is required to personally guarantee the payment of all fees, payments, and monetary obligations that are currently due or may become due in the future from the franchisee to Mrcool, as per the terms of the Franchise Agreement. This also applies to obligations under the Ancillary Agreements. The franchisee also waives certain rights, including the right to require Mrcool to bring an action against the franchisee or any other person as a condition of liability, and the defense of the statute of limitations in any action for the collection of any guaranteed indebtedness.