For B Bops, what information is required for personal guarantors?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- 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.
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- 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, personal guarantors who are partners or shareholders of a developer entering into a Multiple-Unit Development Agreement must provide certain assurances to B Bops Franchising Corp. These individuals must agree to be personally bound by all terms, provisions, and conditions of the agreement. This includes guaranteeing the full and prompt payment of any indebtedness the developer incurs under the agreement.
Furthermore, personal guarantors must agree not to sell, assign, or transfer development rights or any partnership/stock interest without complying with Section 13 of the agreement. They are also bound by the nondisclosure and noncompete covenants outlined in the agreement. This means they are personally liable for any breaches of the agreement, including monetary obligations and obligations to take or refrain from specific actions.
The guaranty is continuing and irrevocable, requiring guarantors to make any payment or performance required under the agreement upon demand if the developer fails to do so. This liability is primary and not contingent upon B Bops pursuing remedies against the developer first. The liability will not be waived or diminished by any extensions of time or credit granted to the developer. The guarantors also waive any notices of acceptance, demand, protest, nonperformance, or other notices.