What costs and expenses are the Guarantors required to indemnify Batteries Plus Bulbs against?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
- A.
Guarantors personally and unconditionally guarantee to Franchisor and its successors and assigns that: (i) Guarantors agree to be personally bound by, and personally liable for the breach of, each and every provision in the Multiple Unit Franchise Agreement, any Batteries Plus® franchise agreement between Multiple Unit Franchisee or its affiliate and the Franchisor, or any other agreement between the Multiple Unit Franchisee or its affiliate and the Franchisor, and all amendments thereto (the "Agreements"); (ii) Multiple Unit Franchisee will timely pay Franchisor and its affiliates all monies Multiple Unit Franchisee owes to Franchisor and its affiliated and related entities, including all monies payable by Multiple Unit Franchisee under the Agreements; and (ii) Multiple Unit Franchisee will timely perform all other undertakings, agreements and covenants stated in the Agreements (collectively the "Multiple Unit Franchise Agreement Obligations").
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs's 2025 Franchise Disclosure Document, the Guarantors personally and unconditionally guarantee to Batteries Plus Bulbs and its successors and assigns that they will be personally bound by, and personally liable for the breach of, each and every provision in the Multiple Unit Franchise Agreement, any Batteries Plus® franchise agreement between Multiple Unit Franchisee or its affiliate and the Franchisor, or any other agreement between the Multiple Unit Franchisee or its affiliate and the Franchisor, and all amendments thereto. This means the Guarantors are on the hook if the franchisee fails to meet their obligations under these agreements.
The Guarantors also guarantee that the Multiple Unit Franchisee will timely pay Batteries Plus Bulbs and its affiliates all monies the Multiple Unit Franchisee owes, including all monies payable under the Agreements. This ensures that Batteries Plus Bulbs receives all payments due from the franchisee, with the Guarantors acting as a safety net. Additionally, the Guarantors ensure that the Multiple Unit Franchisee will timely perform all other undertakings, agreements, and covenants stated in the Agreements, collectively referred to as the "Multiple Unit Franchise Agreement Obligations."
In essence, the Guarantors are stepping up to ensure the financial and operational commitments of the franchisee are met. This arrangement provides Batteries Plus Bulbs with an added layer of security, knowing that there are individuals personally invested in the success and compliance of the franchise. Prospective franchisees should carefully consider the implications of this guarantee and ensure they fully understand the obligations they are undertaking, as well as the financial capacity of the Guarantors to fulfill these commitments.