What does 'even date herewith' mean in the context of the Beauty Bungalows Guaranty and Assumption of Obligations?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of, and as inducement to, the execution of that certain Franchise Agreement of even date herewith (the "Agreement") by Beauty Bungalows Franchising, LLC (the "Franchisor"), each of the undersigned hereby personally and unconditionally (a) guarantees to Franchisor, and its successors and assigns, for the term of the Agreement and thereafter as provided in the Agreement, that the franchisee named in the franchise agreement to which this guaranty is attached (the "Franchisee") shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement; and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities. Notwithstanding clauses (a) and (b) above, a spouse who is also a guarantor hereunder and who becomes widowed and who does not have (and will not obtain) an ownership interest in the Franchisee, the Agreement, or any Franchise Agreement granted thereunder as an owner, co-owner, investor, member, partner, shareholder or like capacity shall not thereafter be held responsible for any monetary obligations thereafter arising out of the terms and conditions of this Guaranty and Assumption of Obligations unless any such ownership interest is acquired in any manner by the widowed spouse, or the widowed spouse's or deceased spouse's children. Notwithstanding any change in ownership resulting from the death of a spouse, all monetary obligations and liabilities existing at the time of death shall continue to be an obligation of the surviving spouse until such obligations or liabilities shall be paid in full by the estate or by the guarantor spouse. Notwithstanding the limitations set forth above, any and all other non-monetary obligations of the Agreement shall remain an obligation of the surviving spouse.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the phrase 'even date herewith' in the Guaranty and Assumption of Obligations refers to the Franchise Agreement being executed on the same date as the guaranty. This means that the guarantor's obligations under the guaranty are tied directly to the execution of the Franchise Agreement itself.
In practical terms, this clause ensures that the guaranty is effective from the moment the Franchise Agreement comes into force. The guarantor, by signing the Guaranty and Assumption of Obligations, agrees to be personally liable for the franchisee's performance under the Franchise Agreement right from the start. This is a common practice in franchising, as it provides the franchisor with an additional layer of security, knowing that a third party has committed to ensuring the franchisee meets their obligations.
It is important to note the exception for widowed spouses who are also guarantors. According to the FDD, a widowed spouse who does not have an ownership interest in the Franchisee, the Agreement, or any Franchise Agreement granted thereunder as an owner, co-owner, investor, member, partner, shareholder or like capacity shall not thereafter be held responsible for any monetary obligations thereafter arising out of the terms and conditions of this Guaranty and Assumption of Obligations unless any such ownership interest is acquired in any manner by the widowed spouse, or the widowed spouse's or deceased spouse's children. However, all monetary obligations and liabilities existing at the time of death shall continue to be an obligation of the surviving spouse until such obligations or liabilities shall be paid in full by the estate or by the guarantor spouse. Also, any and all other non-monetary obligations of the Agreement shall remain an obligation of the surviving spouse.