Is the personal guaranty for the B Bops agreement continuing and irrevocable?
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 personal guaranty associated with the Multiple-Unit Development Agreement is indeed continuing and irrevocable. This means that the individuals signing the guaranty remain responsible for the obligations of the Developer throughout the term of the agreement, and this responsibility cannot be canceled or withdrawn.
Specifically, the personal guaranty ensures that the individuals are personally bound by all terms, provisions, and conditions of the Multiple-Unit Development Agreement. They also guarantee the full and prompt payment of any indebtedness of the Developer to B Bops. Furthermore, the individuals cannot transfer their development rights or ownership interest in the Developer without complying with the agreement's requirements. They are also bound by the nondisclosure and noncompete covenants outlined in the agreement and are personally liable for any breaches of the agreement.
This arrangement provides B Bops with a significant level of security, as it ensures that the obligations under the Multiple-Unit Development Agreement are backed by the personal assets of the guarantors. The guarantors also waive certain rights, such as notice of acceptance, demand, protest, and nonperformance, further solidifying their commitment. For a prospective B Bops franchisee, this highlights the importance of understanding the full scope of the personal financial commitment involved in a Multiple-Unit Development Agreement.