For B Bops, what is the percent ownership field related to in the personal guarantors table?
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 percent ownership field in the personal guarantors table relates to the ownership stake held by partners or shareholders of the developer. This is in reference to the Multiple-Unit Development Agreement. The personal guarantors are representing to B Bops Franchising Corp that they are indeed partners or shareholders of the developer entering into the agreement.
This representation is crucial because these individuals are agreeing to be personally bound by the terms of the Multiple-Unit Development Agreement. They are also guaranteeing the developer's obligations under the agreement. This includes the full and prompt payment of any indebtedness the developer incurs. Furthermore, they agree not to transfer their development rights or ownership interest without complying with the agreement's requirements.
For a prospective B Bops franchisee, this means that if they are entering into a Multiple-Unit Development Agreement as a corporation, partnership, or LLC, the individuals with a controlling interest or management responsibility may be required to provide a personal guarantee. B Bops requires this to ensure that individuals with significant stakes in the development are personally committed to fulfilling the agreement's obligations. This protects B Bops by ensuring recourse beyond just the business entity.