What is the consideration for the franchise granted to the franchisee in the B Bops Personal Guaranty?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the Franchise granted to Franchisee hereunder and in order to induce Company to grant such Franchise to Franchisee, 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 B Bops's 2025 Franchise Disclosure Document, the personal guaranty outlines the obligations of the franchisee's partners, shareholders, or members to B Bops Franchising Corp. As part of the agreement, these individuals guarantee the franchisee's performance and financial obligations. The consideration for the franchise granted to the franchisee is the agreement of the undersigned to be bound to the terms, provisions, and conditions of the Franchise Agreement.
Specifically, the personal guarantors agree to be personally bound by and perform all terms of the Franchise Agreement. They also guarantee the full and prompt payment of any indebtedness the franchisee owes to B Bops or its affiliates under the Franchise Agreement or any related agreement. This includes any monetary obligations and the obligation to take or refrain from specific actions.
Furthermore, the guarantors agree not to sell, assign, or transfer the franchise or any ownership interest in the franchisee without complying with the Franchise Agreement requirements. They are also bound by the nondisclosure and noncompete covenants outlined in the agreement. This ensures that the franchisor's interests are protected by preventing unauthorized transfers or competitive activities by the franchisee's principals.