If a Better Blend franchisee is an entity, what document must each Owner sign?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
The provisions of Article 17 (Dispute Resolution) of the Franchise Agreement apply to and are incorporated into this Guaranty as if fully set forth herein.
Guarantor shall pay to BBF all costs incurred by BBF (including reasonable
attorney fees) in enforcing this Guaranty. If multiple Guarantors sign this Guaranty, each will have joint and several liability.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, if the franchisee is an entity, each Owner must sign a Guaranty. The Guaranty incorporates the dispute resolution provisions outlined in Article 17 of the Franchise Agreement.
The Guarantor is responsible for covering all costs Better Blend incurs while enforcing the Guaranty, including reasonable attorney fees. If there are multiple Guarantors, each bears joint and several liability, meaning each guarantor is individually liable for the full debt, up to the full amount.
This requirement ensures that Better Blend has recourse to the personal assets of the individuals who own the franchisee entity, providing an additional layer of security for Better Blend. This is a common practice in franchising, as it holds the individuals behind the entity personally accountable for the franchisee's obligations under the Franchise Agreement.