What is the relationship between the Personal Guaranty and the Multiple-Unit Development Agreement for B Bops?
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 is an integral part of the Multiple-Unit Development Agreement. The document states that partners or shareholders of the developer entering into the Multiple-Unit Development Agreement must provide a Personal Guaranty.
By signing the Personal Guaranty, these individuals agree to be personally bound by all terms, provisions, and conditions of the Multiple-Unit Development Agreement. This includes guaranteeing the full and prompt payment of any indebtedness of the developer arising from the agreement. They also agree not to transfer development rights or ownership interests without complying with the agreement's Section 13, and they are bound by the agreement's nondisclosure and noncompete covenants.
Furthermore, the individuals providing the Personal Guaranty are personally liable for any breach of the Multiple-Unit Development Agreement, including monetary obligations and obligations to take or refrain from specific actions. This guaranty is continuing and irrevocable, meaning their obligations persist, and B Bops is not required to pursue the developer before seeking payment or performance from the guarantors. The guarantors also waive any notices related to acceptance, demand, protest, or nonperformance.