What is the significance of the 'Percent Ownership' field in the Personal Guarantors table for B Bops?

According to the 2025 B Bops Franchise Disclosure Document, the 'Percent Ownership' field in the Personal Guarantors table signifies the ownership stake each guarantor holds in the franchisee entity. This is relevant because B Bops requires individuals with ownership interests in the franchisee to personally guarantee the franchisee's obligations under the Franchise Agreement. This ensures that those with a financial stake in the B Bops franchise are personally liable for its performance and adherence to the agreement terms.

The personal guaranty extends to various aspects of the Franchise Agreement, including the franchisee's obligation to make payments to B Bops, compliance with non-disclosure and non-compete covenants, and liability for breaches of the agreement. The personal guarantors agree to be bound jointly, individually, and severally to these obligations. This means that B Bops can pursue any one or all of the guarantors for the full amount of any debt or liability, regardless of their individual ownership percentage.

Furthermore, B Bops retains certain controls over changes in ownership. If the franchisee is a partnership, corporation, or limited liability company, B Bops must be notified of any change in ownership interests of 10% or more. A change of 50% or more is considered a transfer of the franchise, subject to B Bops's approval rights. These provisions, combined with the personal guaranty, allow B Bops to maintain oversight and control over the franchise and the individuals responsible for its operation and financial obligations.