Is the Bananas Smoothies Frozen Yogurt guaranty continuing and irrevocable during the term of the agreement?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
Statement and all Riders, Amendments or Addenda hereto. You are not entitled to challenge the validation or authenticity of the electronic signature or Principal Owner's Statement on the ground that it is not the original.
| OWNER INDIVIDUALS | |
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| (Signature) | |
| (Print Name) | |
| (Signature) | |
| (Print Name) | |
| CORPORATION, LIMITED LIABILITY | |
| COMPANY OR PARTNERSHIP | |
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EXHIBIT TWO B
to the Area Development Agreement between Franchisor and Developer. The terms and definitions set out in the Summary Page of the Area Development Agreement are incorporated herein and made a part hereof as if fully set out.
OWNERS' PERSONAL GUARANTY OF DEVELOPER'S OBLIGATIONS
In consideration of, and as an inducement to, the execution of the Everything Yogurt Brands, LLC Area Development Agreement dated as of ____________, 20__ (the "Agreement") by and between EVERYTHING YOGURT BRANDS, LLC ("EYB"), and ________________________ ("Developer"), each of the undersigned owners of an interest in Developer hereby personally and unconditionally: (1) guarantees to EYB and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that Developer shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and that each and every representation of Developer made in connection with the Agreement is true, correct and complete in all respects at and as of the time given;
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, Exhibit Two B outlines the Owners' Personal Guaranty of Developer's Obligations within the Area Development Agreement. This agreement stipulates that the owners of the Developer (the franchisee) personally and unconditionally guarantee to Everything Yogurt Brands, LLC (EYB) that the Developer will fulfill all obligations, agreements, and covenants set forth in the Area Development Agreement. This guarantee extends for the entire term of the Agreement and continues thereafter as specified in the Agreement.
Furthermore, the owners also agree to be personally bound by and liable for any breaches of the Area Development Agreement's provisions. This means that if the Developer fails to meet its financial or operational obligations, the franchisor, Bananas Smoothies Frozen Yogurt, can seek recourse directly from the owners personally.
The owners waive several rights, including the right to require that the franchisor first take action against the Developer before pursuing the guarantors. They also waive any legal or equitable defenses they might otherwise have. This underscores the comprehensive and binding nature of the personal guarantee, ensuring that the franchisor has strong protection against potential defaults or non-compliance by the Developer.
In practical terms, this personal guarantee means that the personal assets of the Bananas Smoothies Frozen Yogurt franchisee's owners are at risk if the franchise fails to perform according to the Area Development Agreement. Prospective franchisees should carefully consider this obligation and ensure they fully understand the implications before signing the Area Development Agreement and the personal guarantee.