Under the B Bops Personal Guaranty, are the undersigned bound jointly, individually, and severally?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
tegral 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.
-
- 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 Franchisee 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 Franchisee; (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 Franchisee; and (e) that they, and each of them, hereby waive notice of acceptance, demand, protest, nonperformance and of any other notices.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the personal guarantors are bound jointly, individually, and severally. Specifically, each person signing the Personal Guaranty agrees to be bound by all terms of the Franchise Agreement. This obligation extends to the full and prompt payment of any debts the franchisee owes to B Bops or its affiliates under the Franchise Agreement or any related agreement.
This means that B Bops can pursue any one of the guarantors for the full amount of the debt, regardless of whether the other guarantors have paid their share. The guarantors cannot transfer their obligations without complying with the Franchise Agreement, and they are bound by the non-disclosure and non-compete clauses within the agreement. Each guarantor is personally liable for any breach of the Franchise Agreement, including both monetary and non-monetary obligations.
Furthermore, the personal guaranty is continuing and irrevocable, meaning the obligations remain in effect. If the franchisee fails to make a payment or perform as required, the guarantors must fulfill these obligations upon demand. The liability of the guarantors is primary, meaning B Bops is not required to first pursue the franchisee before seeking payment or performance from the guarantors. The guarantors also waive any right to notice of acceptance, demand, protest, nonperformance, or any other notices related to the franchisee's obligations.
In essence, the personal guaranty ensures that B Bops has recourse to the personal assets of the franchisee's owners or members to secure the franchisee's obligations under the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and encourages the franchisee's owners to actively manage and ensure the success of the franchise.