Where is the Personal Covenant and Guarantee attached in the Bath Tune Up franchise agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
PERSONAL COVENANT AND GUARANTEE
(To be signed by franchisee's spouse, if any, and by all owners, if franchisee is a company.)
In return for the signing by Franchisor of this Franchise Agreement, and of other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the undersigned covenant and agree as follows:
- A. The undersigned represent to Franchisor that the undersigned are all of the people having direct or indirect "Control" (as defined in the Franchise Agreement) or a direct or indirect beneficial ownership interest in Franchisee.
- B. The undersigned, individually and jointly, will (i) comply with and be bound by all provisions of the Franchise Agreement to the same extent as if each of them were the Franchisee, and (ii) not engage in any activities not permitted to the Franchisee under the Franchise Agreement (whether in their own behalf or in any capacity on behalf of any entity).
- C. Any controversy or claim arising out of this Personal Covenant and Guarantee, or any breach of it, will be submitted to mediation and arbitration in accordance with Section 11 of the Franchise Agreement.
- D. If any other people obtain direct or indirect Control of Franchisee or a direct or indirect beneficial interest in Franchisee, the undersigned will cause those people to sign and deliver to Franchisor a counterpart of this Personal Covenant and Guarantee.
- E. This Personal Covenant and Guarantee will be governed in accordance with the laws of the same state whose laws govern the Franchise Agreement.
Date: Print Name: Date: Print Name: Date: Print Name:
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 37)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the Personal Covenant and Guarantee is part of the franchise agreement. Specifically, it is to be signed by the franchisee's spouse, if any, and by all owners if the franchisee is a company. By signing this covenant, these individuals agree to be bound by all provisions of the Franchise Agreement as if they were the franchisee. They also agree not to engage in any activities not permitted to the franchisee under the agreement, whether on their own behalf or for any other entity.
Any disputes arising from the Personal Covenant and Guarantee will be subject to mediation and arbitration as outlined in Section 11 of the Franchise Agreement. Furthermore, if any new individuals gain control or a beneficial interest in the franchisee's company, the current signatories are responsible for ensuring that these new individuals also sign and deliver a counterpart of the Personal Covenant and Guarantee to Bath Tune Up. The Personal Covenant and Guarantee is governed by the same state laws that govern the Franchise Agreement.
This requirement ensures that all individuals with a significant stake in the Bath Tune Up franchise are personally committed to upholding the terms of the agreement. This provides Bath Tune Up with an additional layer of security and recourse in case of breaches or disputes. Prospective franchisees should carefully review this section and ensure that all relevant parties are willing to sign and adhere to the Personal Covenant and Guarantee.