What is the definition of 'Guaranteed Liabilities' in the context of the Beem Light Sauna franchise agreement?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
The Guarantors jointly and severally unconditionally guarantee to Franchisor and its Affiliates the payment and performance when due, whether by acceleration or otherwise, of all obligations, indebtedness, and liabilities of Franchisee to Franchisor, direct or indirect, absolute or contingent, of every kind and nature, whether now existing or incurred from time to time hereafter, whether incurred pursuant to the Franchise Agreement or otherwise, together with any extension, renewal, or modification thereof in whole or in part (the "Guaranteed Liabilities").
The Guarantors agree that if any of the Guaranteed Liabilities are not so paid or performed by Franchisee when due, the Guarantors will immediately do so.
The Guarantors further agree to pay all expenses (including reasonable attorneys' fees) paid or incurred in endeavoring to enforce this Guarantee or the payment of any Guaranteed Liabilities.
The Guarantors represent and agree that they have each reviewed a copy of the Franchise Agreement and have had the opportunity to consult with counsel to understand the meaning and import of the Franchise Agreement and this Guarantee.
Source: Item 23 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, the term 'Guaranteed Liabilities' refers to the obligations, indebtedness, and liabilities of the franchisee to Beem Franchisor LLC. These liabilities are guaranteed by the Guarantors, as detailed in the Payment and Performance Guarantee attached as Appendix C to the Franchise Agreement.
Guaranteed Liabilities encompass all forms of financial and performance-related responsibilities, whether they are direct or indirect, absolute or contingent. This includes any existing debts or those incurred in the future. These liabilities can arise from the Franchise Agreement itself or from any other interactions or agreements between the franchisee and Beem Light Sauna. The guarantee extends to any extensions, renewals, or modifications of these obligations.
In practical terms, this means that if a Beem Light Sauna franchisee fails to meet their financial or performance obligations, the Guarantors are legally bound to fulfill those obligations immediately. Furthermore, the Guarantors are responsible for covering all expenses, including reasonable attorney's fees, that Beem Light Sauna incurs while trying to enforce the guarantee or recover any of the Guaranteed Liabilities. The Guarantors confirm they have reviewed the Franchise Agreement and consulted with counsel to fully understand their obligations under the agreement and the guarantee.