What attachment in the Red Wagon Club Franchise Agreement discusses the guaranty?
Red_Wagon_Club Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in Franchise Agreement or related Agreement(s) | Item in Disclosure Document |
|---|---|---|
| v. Post-termination obligations | Franchise Agreement Sec. 18 Sublicense Agreement Secs. 6.(b), 8, 10.(c) | 17 |
| w. Non-competition covenants | Franchise Agreement Sec. 8.A, 18.E Sublicense Agreement Sec. 8 | 15, 17 |
| x. Dispute resolution | Franchise Agreement Sec. 20 Sublicense Agreement Sec. 12 | 17 |
| y. Guaranty | Franchise Agreement Sec. 2, Attachment B | 15 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–31)
What This Means (2024 FDD)
According to the 2024 Red Wagon Club Franchise Disclosure Document, the guaranty is discussed in Attachment B of the Franchise Agreement. Specifically, the table provided in Item 11 of the FDD cross-references the guaranty obligation to 'Franchise Agreement Sec. 2, Attachment B'. This indicates that a separate attachment to the main agreement outlines the details and requirements related to the guaranty.
For a prospective Red Wagon Club franchisee, this means that if a guaranty is required, the specific terms and conditions will be found in Attachment B of their Franchise Agreement. This attachment would likely detail who is required to provide the guaranty (e.g., the franchisee, its owners, or other related parties), the scope of the guaranty (i.e., what obligations are being guaranteed), and the duration of the guaranty.
It is important for potential franchisees to carefully review Attachment B with legal counsel to fully understand their obligations and potential liabilities under the guaranty. The guaranty could expose the franchisee or related parties to significant financial risk if the Red Wagon Club business fails to meet its financial obligations under the Franchise Agreement.