Under the Owners' Personal Guaranty for Bananas Smoothies Frozen Yogurt, what agreement is being referenced?
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 | |
|---|---|
| (Signature) | |
| (Print Name) | |
| (Signature) | |
| (Print Name) | |
| CORPORATION, LIMITED LIABILITY | |
| COMPANY OR PARTNERSHIP | |
| (Name) | |
| By: | |
| Title: |
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 Bananas Smoothies Frozen Yogurt's 2025 Franchise Disclosure Document, the Owners' Personal Guaranty is tied to the Area Development Agreement. Specifically, it is referred to as "EXHIBIT TWO B to the Area Development Agreement between Franchisor and Developer." This agreement incorporates the terms and definitions set out in the Summary Page of the Area Development Agreement.
The Owners' Personal Guaranty stipulates that the owners of the Developer personally and unconditionally guarantee that the Developer will fulfill all obligations, agreements, and covenants outlined in the Area Development Agreement. This guarantee extends for the term of the Area Development Agreement and beyond, as specified within the agreement itself. The owners also guarantee the accuracy and completeness of all representations made by the Developer in connection with the Area Development Agreement.
Furthermore, the owners personally agree to be bound by and liable for any breaches of the Area Development Agreement. They waive rights such as acceptance and notice of acceptance by Everything Yogurt Brands, LLC (EYB), notice of demand for payment or nonperformance, protest and notice of default, and any requirement to bring an action against the Developer before pursuing the guarantors. This waiver also includes any other legal or equitable defenses they might otherwise be entitled to.
In practical terms, this means that if a franchisee of Bananas Smoothies Frozen Yogurt operates under a business entity, the franchisor, Everything Yogurt Brands, LLC, requires the owners of that entity to personally guarantee the franchisee's obligations under the Area Development Agreement. This ensures that the franchisor has recourse to the personal assets of the owners if the franchisee fails to meet its contractual obligations. Prospective franchisees should carefully review the Area Development Agreement and understand the full extent of their personal liability under the Owners' Personal Guaranty.