Is the Personal Guaranty for the B Bops franchise agreement continuing and revocable?
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, shareholders or members of the franchisee ("Franchisee") entering into the within and foregoing Franchise Agreement (the "Agreement"), of which this Personal Guaranty shall be deemed an integral part.
In consideration of the Franchise granted to Franchisee hereunder and in order to induce Company to grant such Franchise to Franchisee, 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 or its affiliates of any indebtedness of Franchisee arising under or by virtue of this Agreement or any other agreement between the parties relating to the Franchise granted under this Agreement; (c) that they, and each of them, will not sell, assign or otherwise permit or cause a transfer of the Franchise or any ownership interest in Franchisee without complying with the requirements of this Agreement; (d) that they, and each of them, shall be personally bound by the nondisclosure and noncompete covenants set forth in 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 B Bops Franchise Disclosure Document, the provided excerpts do not specify whether the Personal Guaranty is continuing or revocable. However, the document does outline the obligations of the guarantor.
The Personal Guaranty mandates that the individuals signing the guaranty are partners, shareholders, or members of the franchisee. By signing, these individuals agree to be personally bound by the terms of the Franchise Agreement. This includes guaranteeing the franchisee's financial obligations to B Bops, ensuring they will cover any debts arising from the agreement.
Furthermore, the guarantors agree not to transfer the franchise or any ownership interest without complying with the agreement's requirements. They are also bound by the non-disclosure and non-compete covenants outlined in the agreement. The personal guaranty makes them liable for any breaches of the agreement, including both monetary and non-monetary obligations.
To fully understand the terms of the Personal Guaranty, a prospective B Bops franchisee should ask the franchisor for clarification on whether the guaranty is continuing, meaning it extends to future obligations and renewals, and if it is revocable, meaning under what conditions the guarantor can be released from their obligations.