Who benefits from the provisions of the Bens Soft Pretzels Personal Guarantee?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
All persons owning an interest in Franchisee that is a corporation, limited liability company, partnership or other legal entity must execute the form of undertaking and guarantee at the end of this Agreement.
Any person or entity that at any time after the date of this Agreement that becomes an owner pursuant to the provisions of Paragraph 11 or otherwise must execute the form of undertaking and guarantee at the end of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 FDD, all persons owning an interest in a Bens Soft Pretzels franchise that is a corporation, limited liability company, partnership, or other legal entity must execute a form of undertaking and guarantee. Additionally, any person or entity that becomes an owner after the date of the Franchise Agreement must also execute this guarantee.
This guarantee ensures that Bens Soft Pretzels has recourse to the personal assets of the franchise owners should the franchise entity default on its obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and encourages franchise owners to actively manage their business.
For a prospective Bens Soft Pretzels franchisee, this means that if you own your franchise through a corporation, LLC, or partnership, you will be required to personally guarantee the franchise's obligations. This could put your personal assets at risk if the franchise fails. It is important to carefully consider the financial risks and rewards before signing a franchise agreement and personal guarantee.