Can the Guaranty and Assumption of Franchisee's Obligations for Bambu be executed by electronic signature?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that:
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- His or her direct and immediate liability under this guaranty shall be joint and several;
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- He or she shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so;
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- Such liability shall not be contingent or conditioned upon pursuit by Bambu of any remedies against Franchisee or any other person; and
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- Such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Bambu may from time to time grant to Franchisee or to any other person, including without limitation the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement, including successor franchise terms.
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- His or her obligation and liability hereunder shall not be affected by any amendment or modification of the Agreement and he or she has no right to approve or consent to any such amendment or modification.
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- He or she shall be bound by the restrictive covenants and confidentiality provisions contained in Article 21 of the Agreement and the indemnification provision contained in Section 20.3 of the Agreement and such provisions are incorporated into this Guaranty by this reference; and
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- The governing law, venue, jurisdiction, injunctive relief, limitations on remedies and attorneys' fee provisions contained in Article 23 and Section 24.6 of the Agreement shall govern this Guaranty and such provisions are incorporated into this Guaranty by this reference.
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- This Guaranty may be executed by electronic signature.
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- HE OR SHE WAIVES HIS OR HER RIGHT TO A TRIAL BY JURY.
IN WITNESS WHEREOF, each of the undersigned has affixed his or her signature effective on the same day and year as the Agreement was executed.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Guaranty and Assumption of Franchisee's Obligations can be executed via electronic signature. Specifically, the franchise agreement includes an attachment, 'Guaranty and Assumption of Franchisee's Obligations,' which outlines the terms under which a guarantor agrees to ensure the franchisee fulfills their obligations.
This guaranty is a legally binding agreement where the guarantor commits to cover the franchisee's responsibilities, including financial and performance obligations, for the entire term of the franchise agreement, including any renewals. The guarantor waives certain rights, such as requiring Bambu to pursue action against the franchisee first, and consents to the terms of the guaranty, including joint and several liability.
Furthermore, the terms of the guaranty specify that it remains in effect even if the franchise agreement is modified or if Bambu grants extensions or indulgences to the franchisee. The guarantor is also bound by the non-compete and confidentiality provisions in the franchise agreement. Importantly, the Guaranty and Assumption of Franchisee's Obligations explicitly states that it 'may be executed by electronic signature.'
This clause provides flexibility and convenience in the execution process, allowing for quicker and more efficient agreement finalization. It also aligns with modern business practices that recognize the validity and enforceability of electronic signatures, as long as they comply with applicable laws.