Under the Ben Jerrys Guarantee Provision, what obligations of the OPERATOR are unconditionally guaranteed?

According to Ben Jerrys's 2025 Franchise Disclosure Document, the Guarantee Provision stipulates that if the OPERATOR is a corporation, partnership, or other legal entity, all owners must execute a guarantee. This guarantee ensures that all of the OPERATOR's obligations under the Franchise Agreement will be punctually paid to Ben Jerrys and its successors or assignees. This guarantee is made jointly and severally by the undersigned parties.

In practical terms, this means that the personal assets of the owners are at risk if the Ben Jerrys franchise fails to meet its financial obligations. Ben Jerrys requires this provision to ensure that there is a responsible party who is personally invested in the success of the franchise and is liable for its debts. This is a common practice in franchising, as it provides the franchisor with an additional layer of security.

It is important to note that this guarantee remains in effect even after the termination or expiration of the Franchise Agreement for any obligations that arose before the termination date. Additionally, the estate of a deceased guarantor is bound by the guarantee for any existing defaults or obligations at the time of death, while the obligations of the remaining guarantors continue in full force. Prospective franchisees should carefully consider the implications of this Guarantee Provision and seek legal counsel to fully understand their obligations and potential liabilities.