What is the nature of the Baya Bar Guaranty: absolute, conditional, or something else?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor acknowledges that Guarantor is the spouse of Franchisee's Principal, as that term is used in the Franchise Agreement.
Guarantor acknowledges that Guarantor has read the terms and conditions of the Franchise Agreement and acknowledges that the execution of this Guaranty are in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement to Franchisee, and that Franchisor would not have granted these rights without the execution of this Guaranty by Guarantor.
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the monetary obligations and non-competition covenants and agreements of the Franchisee as set forth in the Franchise Agreement, including but not limited to, the covenants set forth in Sections 19.2, 19.5, 19.6, 19.8 and 19.9 of the Franchise Agreement ("Guaranteed Obligations"). Guarantor shall perform and/or make punctual payment to Franchisor of the Guaranteed Obligations in accordance with the terms of the Franchise Agreement or other applicable document forthwith upon demand by Franchisor.
This Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. This Guaranty shall not be discharged by renewal of any claims guaranteed by this instrument, change in ownership or control of the Franchisee entity, transfer of the Franchise Agreement, the suffering of any indulgence to any debtor, extension of time of payment thereof, nor the discharge of Franchisee by bankruptcy, operation of law or otherwise. Presentment, demand, protest, notice of protest and dishonor, notice of default or nonpayment and diligence in collecting any obligation under any a
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the Guaranty is absolute and unconditional. The spouse of the franchisee's principal acknowledges they have read the terms and conditions of the Franchise Agreement and that the execution of the Guaranty is a partial consideration for granting the rights in the Franchise Agreement to the franchisee. Baya Bar would not have granted these rights without the Guaranty.
The guarantor agrees to be bound by and perform all monetary obligations and non-competition covenants and agreements of the franchisee as set forth in the Franchise Agreement. This includes, but is not limited to, the covenants set forth in specific sections of the Franchise Agreement related to obligations. The guarantor must make punctual payment to Baya Bar of the guaranteed obligations upon demand.
This Guaranty is a continuing guaranty of payment and performance of the Guaranteed Obligations. The Guaranty will not be discharged by renewal of any claims guaranteed by this instrument, change in ownership or control of the Franchisee entity, transfer of the Franchise Agreement, the suffering of any indulgence to any debtor, extension of time of payment thereof, nor the discharge of Franchisee by bankruptcy, operation of law or otherwise. Presentment, demand, protest, notice of protest and dishonor, notice of default or nonpayment and diligence in collecting any obligation under any agreement are not required.