For a breach of any provision of the B Bops Franchise Agreement, are the undersigned persons personally liable?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
each of the undersigned hereby agrees, jointly, individually and severally, for themselves, their heirs, legal representatives and assigns as follows: (a) that they, and each of them, shall be personally bound by and agree to perform all of the terms, provisions and conditions of this Agreement; (b) that they, and each of them, do hereby personally and unconditionally guarantee full and prompt payment to Company or its affiliates of any indebtedness of Franchisee arising under or by virtue of this Agreement or any other agreement between the parties relating to the Franchise granted under this Agreement; (c) that they, and each of them, will not sell, assign or otherwise permit or cause a transfer of the Franchise or any ownership interest in Franchisee without complying with the requirements of this Agreement; (d) that they, and each of them, shall be personally bound by the nondisclosure and noncompete covenants set forth in this Agreement; and (e) that they, and each of them, shall be personally liable for the breach of any provision of this Agreement, including both monetary obligations and any obligation to take or refrain from taking specific actions or activities.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, individuals signing the Personal Guaranty are personally liable for breaches of the Franchise Agreement. Specifically, if the franchisee is a partnership, corporation, or LLC, the partners, shareholders, or members who sign the Personal Guaranty agree to be bound by all terms of the agreement.
This means that these individuals guarantee the franchisee's performance and payment obligations to B Bops. They are guaranteeing that the B Bops franchise will meet its financial responsibilities and uphold all operational standards outlined in the Franchise Agreement. This guarantee extends to any indebtedness of the franchisee to B Bops or its affiliates.
Furthermore, the individuals signing the guaranty also agree to be bound by the non-disclosure and non-compete covenants within the Franchise Agreement. They are also liable for ensuring specific actions are taken or not taken as required by the agreement. This personal liability extends to both monetary obligations and required actions or inactions.
In practical terms, this clause means that B Bops can pursue the personal assets of the guarantors if the franchise fails to meet its obligations. Prospective franchisees should carefully consider the implications of the Personal Guaranty and ensure they fully understand the risks involved before signing the Franchise Agreement.