Is the liability of the undersigned contingent upon B Bops pursuing remedies against the Developer?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, the liability of the undersigned, who are partners or shareholders of the developer, is not contingent upon B Bops pursuing remedies against the Developer. The personal guaranty agreement specifies that the liability of the guarantors is primary.
Specifically, the personal guaranty states that each of the undersigned agrees to be personally bound by and perform all terms, provisions, and conditions of the Multiple-Unit Development Agreement. They also guarantee full and prompt payment to B Bops of any indebtedness of the Developer arising from the agreement. This obligation extends to monetary obligations and any obligation to take or refrain from specific actions.
Furthermore, the agreement explicitly states that the liability of the undersigned is primary and not contingent upon B Bops pursuing or exhausting any remedies against the Developer. This means B Bops can seek payment or performance directly from the guarantors without first having to take action against the Developer. The guarantors also waive any notice of acceptance, demand, protest, nonperformance, or any other notices.