Does the B Bops personal guaranty specify any monetary limits to the liability of the undersigned?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 the 2025 B Bops Franchise Disclosure Document, the personal guaranty within the Multiple-Unit Development Agreement does not specify any monetary limits to the liability of the undersigned. Instead, it establishes a comprehensive and unconditional guarantee.
The personal guaranty stipulates that the undersigned are personally bound by all terms, provisions, and conditions of the Multiple-Unit Development Agreement. This includes guaranteeing full and prompt payment of any indebtedness of the Developer arising under the agreement. The guarantors also agree not to transfer development rights without complying with the agreement's Section 13, and they are bound by the nondisclosure and noncompete covenants.
Furthermore, the guaranty makes the undersigned personally liable for any breach of the agreement, covering both monetary obligations and obligations to perform specific actions. The guaranty is continuing and irrevocable, meaning the liability remains in effect, and the guarantors waive any requirement for notice of acceptance, demand, protest, or nonperformance. This arrangement places significant financial and legal responsibility on the individuals signing the guaranty, without any stated cap on their potential liability.