What specific articles and sections of the Franchise Agreement are guarantors personally bound by under the Guaranty and Assumption of Franchisee's Obligations for Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
he Agreement (the "Franchisee") shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; and
Agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, including but not limited to, the terms of the articles and sections pertaining to noncompetition during and after the term, confidentiality and the Marks and copyrighted works of Bambu.
Each of the undersigned waives the following:
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- Acceptance and notice of acceptance by Bambu of the foregoing undertaking;
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- Notice of demand for payment of any indebtedness or nonperformance of any obligations hereby guaranteed;
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- Protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed;
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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 specifies that guarantors are personally bound by certain articles and sections of the Franchise Agreement. Specifically, guarantors agree to be bound by the terms related to noncompetition during and after the franchise term, confidentiality, and the use of Bambu's trademarks and copyrighted works. This means that the guarantor is equally responsible for upholding these specific aspects of the agreement as the franchisee.
Furthermore, the guarantor is explicitly bound by the restrictive covenants and confidentiality provisions outlined in Article 21 of the Franchise Agreement. They are also bound by the indemnification provision detailed in Section 20.3 of the agreement. Additionally, the governing law, venue, jurisdiction, injunctive relief, limitations on remedies, and attorneys' fee provisions found in Article 23 and Section 24.6 of the Franchise Agreement also apply to the Guaranty.
In practical terms, this means that if the Bambu franchisee violates the non-compete clause, discloses confidential information, or infringes on Bambu's trademarks, the guarantor can be held personally liable for these breaches. The guarantor is also subject to the legal and financial consequences outlined in the specified articles and sections, including covering legal fees and damages. This ensures that Bambu has recourse not only against the franchisee's business but also against the personal assets of the guarantor, providing an additional layer of security for the franchisor.
Prospective franchisees should carefully review these articles and sections with their legal counsel to fully understand the scope of the guarantor's obligations and potential liabilities. It is also important for potential guarantors to assess their own financial situation and risk tolerance before signing the Guaranty and Assumption of Franchisee's Obligations, as their personal assets could be at stake if the franchisee fails to comply with the specified terms of the Franchise Agreement.