What document must a Batteries Plus Bulbs 'Principal Owner' sign?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Guaranty. All Principal Owners of a Franchisee which is a corporation, partnership or other entity, will sign the Guaranty and Assumption Agreement in the form attached to this Agreement as Exhibit E (the "Guaranty Agreement"). Any person or entity that at any time after the date of this Agreement becomes a Principal Owner of Franchisee under the provisions of this Section 15 or otherwise will, as a condition of becoming a Principal Owner, sign the Guaranty Agreement. Franchisee will furnish to Franchisor at any time upon reasonable request a certified copy of the Articles of Incorporation or Articles of Organization and a list, in a form Franchisor reasonably requires, of all shareholders or members of record and all persons having a beneficial interest in any corporation or other entity that is or becomes a Franchisee.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 47–48)
What This Means (2025 FDD)
According to the 2025 Batteries Plus Bulbs FDD, a Principal Owner of a franchisee entity (corporation, partnership, or other entity) must sign a Guaranty and Assumption Agreement. This agreement is attached to the Franchise Agreement as Exhibit E, also referred to as the "Guaranty Agreement."
A 'Principal Owner' is defined as any person or entity owning 10% or more of the franchisee. If the franchisee is a corporation, partnership, or other entity, a Principal Owner also includes shareholders or owners with a 10% or greater interest in that entity. If the franchisee is one or more individuals, each individual is considered a Principal Owner.
The requirement to sign a Guaranty Agreement extends not only to initial Principal Owners but also to anyone who becomes a Principal Owner after the franchise agreement's date. This ensures that all individuals with significant ownership in the Batteries Plus Bulbs franchise are bound by the terms of the guaranty. Batteries Plus Bulbs also requires franchisees to provide certified copies of organizational documents and shareholder/member lists upon request to verify ownership.