What is the relationship between the Personal Guaranty and the B Bops Franchise Agreement?
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)
According to B Bops's 2025 Franchise Disclosure Document, the Personal Guaranty is an integral part of the Franchise Agreement. Individuals who are partners, shareholders, or members of the franchisee must sign the Personal Guaranty. By signing, these individuals represent to B Bops Franchising Corp that they are associated with the franchisee entering into the Franchise Agreement.
The Personal Guaranty ensures that these individuals are personally bound by the terms and conditions of the Franchise Agreement. This means they agree to perform all obligations outlined in the agreement. They also guarantee the full and prompt payment of any debts the franchisee owes to B Bops or its affiliates under the Franchise Agreement or any related agreements. Furthermore, they agree not to transfer the franchise or any ownership interest in the franchisee without complying with the agreement's requirements.
In addition, the Personal Guaranty makes these individuals personally liable for any breaches of the Franchise Agreement, including both monetary obligations and obligations to take or refrain from specific actions. They are also bound by the non-disclosure and non-compete covenants outlined in the Franchise Agreement. This arrangement provides B Bops with added security, ensuring that the obligations of the franchisee are met and that the individuals behind the franchisee are fully committed to the agreement.