Under which exhibit is the Personal Guaranty Agreement located for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
Execution of this Agreement via DocuSign or any other reputable e-signature service will constitute valid and enforceable execution.
L. Definition of "Including." In this Agreement, including means "including but not limited to" unless expressly stated otherwise.
[7. Effective Date. The effective date of this Agreement shall be the date the last party signs.] IN WITNESS WHEREOF, the parties have executed this Agreement. "Franchisor": Afuri Franchise Inc. By (Signature): "Franchisee": , an individual , an individual [ENTITY NAME] By (Signature): Instructions for signatures (above) for "Franchisee" and "Transferee": If you are a corporation, limited liability company or other business entity, then this Agreement should be signed by a company officer or owner authorized to sign on behalf of the company. Additionally, this Agreement must be signed by all officers and owners of the company as individuals.
Exhibit I to Afuri Franchise Disclosure Document
PERSONAL GUARANTY AGREEMENT
Each of the undersigned waives: (1) acceptance and notice of acceptance by the Franchisor of the foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed; (4) any right the undersigned may otherwise have to require that an action be brought against the Franchisee or any other person as a condition of liability.
Source: Item 22 — Contracts (FDD page 50)
What This Means (2024 FDD)
According to the 2024 Afuri Ramen Dumpling FDD, the Personal Guaranty Agreement is located in Exhibit I of the franchise disclosure document. This agreement requires the franchisee to guarantee the obligations of the franchise, ensuring that the franchisor has recourse to the franchisee's personal assets if the business fails to meet its financial responsibilities.
The Personal Guaranty Agreement stipulates that the undersigned waives certain rights, including acceptance and notice of acceptance by the Franchisor, notice of demand for payment, protest and notice of default, and any right to require action against the Franchisee before liability. This means that the guarantor is immediately responsible for the debt or obligations without the franchisor needing to pursue the franchisee first.
For a prospective Afuri Ramen Dumpling franchisee, this implies a significant personal financial risk. Before signing the agreement, it is crucial to fully understand the extent of the personal guarantee and to seek legal counsel. Franchisees should assess their personal financial situation and risk tolerance, as this agreement could potentially put their personal assets at risk if the franchise encounters financial difficulties.