What does the personal guaranty for B Bops require the undersigned to guarantee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, the personal guaranty requires the undersigned to guarantee several obligations related to the Multiple-Unit Development Agreement. The guarantors represent that they are partners or shareholders of the developer. They agree to be personally bound by all terms, provisions, and conditions of the agreement. This means they are equally responsible for fulfilling the developer's obligations.
Specifically, the guarantors unconditionally guarantee full and prompt payment of any indebtedness the developer incurs under the agreement. They also agree not to transfer development rights or any ownership interest in the developer without complying with Section 13 of the agreement. Furthermore, they are personally bound by the nondisclosure and noncompete covenants within the agreement, meaning they cannot disclose confidential information or compete with B Bops.
Finally, the guarantors are personally liable for any breach of the agreement, including monetary obligations and obligations to take or refrain from specific actions. This guaranty is continuing and irrevocable, meaning it remains in effect and cannot be canceled. The liability is primary, so B Bops does not need to pursue the developer first before seeking payment or performance from the guarantors. The guarantors also waive any notices related to acceptance, demand, protest, or nonperformance, indicating they are immediately responsible if the developer fails to meet its obligations.