In the B Bops franchise agreement, what information is required when signing the Guaranty?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
DEVELOPER
PERSONAL GUARANTY OF OBLIGATIONS UNDER MULTIPLE-UNIT DEVELOPMENT AGREEMENT
-
- The undersigned persons hereby represent to B-Bop's Franchising Corp. ("Company") that they are partners or shareholders of the developer ("Developer") entering into the within and foregoing Multiple-Unit Development Agreement (the "Agreement"), of which this Personal Guaranty shall be deemed an integral part.
-
- In consideration of the development rights granted to Developer hereunder and in order to induce Company to grant such development rights to Developer, 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 of any indebtedness of Developer arising under or by virtue of this Agreement; (c) that they, and each of them, will not sell, assign or otherwise permit or cause a transfer of the development rights or any partnership or stock interest in Developer without complying with the requirements of Section 13 of the Agreement; (d) that they, and each of them, shall be personally bound by the nondisclosure and noncompete covenants of 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.
-
- Each of the undersigned further agree as follows: (a) that this Guaranty shall be continuing and irrevocable; (b) that they, and each of them, shall render any payment or performance required under this Agreement upon demand if Developer fails or refuses promptly to do so; (c) such liability shall be primary and shall not be contingent upon Company pursuing or exhausting any remedies against Developer; (d) such liability shall not be waived, diminished or otherwise affected by any extension of time, credit or other indulgence which Company may from time to time grant to Developer; and (e) that they, and each of them, hereby waive notice of acceptance, demand, protest, nonperformance and of any other notices.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the Personal Guaranty of Obligations under the Multiple-Unit Development Agreement requires the undersigned persons to represent that they are partners or shareholders of the developer entering into the agreement. This representation is an integral part of the agreement.
In consideration of the development rights granted to the developer, the undersigned jointly, individually, and severally agree to be personally bound by and perform all terms, provisions, and conditions of the agreement. They also guarantee full and prompt payment to B Bops of any indebtedness of the developer arising under the agreement. Furthermore, they agree not to sell, assign, or transfer development rights or any partnership or stock interest in the developer without complying with Section 13 of the agreement. The undersigned are also personally bound by the nondisclosure and noncompete covenants of the agreement and are personally liable for any breach of the agreement, including monetary obligations and obligations to take or refrain from specific actions.
Each undersigned person further agrees that the Guaranty is continuing and irrevocable. They must render any payment or performance required under the agreement upon demand if the developer fails or refuses to do so promptly. This liability is primary and not contingent upon B Bops pursuing remedies against the developer. The liability is not waived, diminished, or affected by any extension of time, credit, or other indulgence granted to the developer. The undersigned waive notice of acceptance, demand, protest, nonperformance, and any other notices.
In essence, the personal guaranty ensures that B Bops has recourse to the personal assets of the developer's partners or shareholders, providing an additional layer of security for B Bops in case the developer fails to meet its obligations under the Multiple-Unit Development Agreement. This is a common practice in franchising, especially when dealing with multi-unit developments, as it mitigates the risk for the franchisor.