For B Bops, who determines which partners or shareholders of the Developer Company must execute the Guaranty?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Signature | Date | Percent Ownership |
|---|---|---|
| Signature | Date | Percent Ownership |
| NOTE: This Guaranty must be executed by such partners or shareholders of Developer as | ||
| Company may direct. |
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company determines which partners or shareholders of the Developer Company must execute the Guaranty. This requirement is documented in Item 23, which includes a table with a note specifying that the guaranty must be executed by partners or shareholders of the Developer as directed by B Bops.
This means that if you are entering into a Multiple-Unit Development Agreement with B Bops as a developer, B Bops has the authority to specify which of your partners or shareholders must personally guarantee the obligations under the agreement. This is a significant point for potential developers because it means that not all partners or shareholders may be required to execute the guaranty; B Bops reserves the right to choose who must provide this personal guarantee.
For a prospective franchisee, this implies that B Bops can selectively require guarantees from specific individuals within the developer entity, potentially based on their financial standing or level of involvement in the company. This could affect the personal liability of those individuals, making them directly responsible for the developer's obligations to B Bops. Therefore, it is crucial to understand who B Bops will require to sign the guaranty and what the implications are for those individuals.
It is important for potential developers to discuss with B Bops which partners or shareholders they intend to have execute the guaranty and to fully understand the extent of the personal liability involved. This information is essential for making an informed decision about entering into a Multiple-Unit Development Agreement with B Bops.