Under the Guaranty and Assumption of Franchisee's Obligations, is the guarantor's liability joint, several, or both for Bambu?

According to Bambu's 2025 Franchise Disclosure Document, the guarantor's liability under the Guaranty and Assumption of Franchisee's Obligations is joint and several. This means that each guarantor is individually and collectively responsible for the franchisee's obligations to Bambu. Bambu can pursue any guarantor for the full amount of the franchisee's debt or obligations, regardless of whether other guarantors exist or their ability to pay.

This arrangement provides Bambu with a higher degree of financial security, as they have multiple parties liable for the franchisee's performance. It also means that if one guarantor is unable to fulfill their obligations, Bambu can seek recourse from the other guarantors. This is a common practice in franchising, as it reduces the franchisor's risk in case the franchisee defaults on their obligations.

For a prospective Bambu franchisee, this implies that anyone signing a guaranty agreement must fully understand the extent of their financial exposure. They are not only responsible for their own actions but also for the actions of the franchisee. Before signing, potential guarantors should carefully review the franchise agreement and seek legal counsel to fully understand the implications of a joint and several guaranty.