If the Bambu franchisee is an entity, who must sign the Personal Guaranty?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if Franchisee is an entity, all of the owners, partners or members of Franchisee shall sign the Personal Guaranty attached hereto as Attachment II.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if the franchisee is a business entity, all owners, partners, or members of that entity must sign the Personal Guaranty. This requirement ensures that individuals with a controlling interest in the Bambu franchise are personally liable for the franchise's obligations under the Franchise Agreement.
This means that if a franchisee operates their Bambu location through a corporation, LLC, or partnership, each person with an ownership stake in that entity is required to sign the Personal Guaranty. By signing this guaranty, these individuals agree to be personally responsible for the financial and operational performance of the franchise. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and ensures that those in control of the franchise are fully committed to its success.
For a prospective Bambu franchisee, this requirement highlights the importance of understanding the legal and financial implications of the franchise agreement. It also emphasizes the need to carefully consider the ownership structure of the business entity that will operate the franchise. Franchisees should consult with legal and financial advisors to fully understand the obligations and liabilities associated with the Personal Guaranty before signing the agreement.