Who is responsible for the costs incurred by BBF in enforcing the Better Blend Guaranty?

According to the 2024 Better Blend Franchise Disclosure Document, the Guarantor is responsible for covering all costs incurred by Better Blend Franchising, LLC (BBF) while enforcing the Guaranty. These costs specifically include reasonable attorney fees.

This means that if Better Blend has to take legal action to enforce the Guaranty, the Guarantor will be responsible for paying Better Blend's legal expenses. If multiple Guarantors have signed the Guaranty, they will be held jointly and severally liable, meaning each Guarantor is individually responsible for the full amount of the debt. Better Blend can pursue any one or all of the guarantors for the full amount of the enforcement costs.

This clause is significant for potential franchisees as it outlines a financial risk associated with the Guaranty. Before signing the Guaranty, prospective franchisees should carefully consider the potential costs of enforcement and ensure they understand their obligations. It is advisable to seek legal counsel to fully understand the implications of this clause.

This type of clause is relatively standard in franchise agreements, as franchisors seek to protect their interests and ensure they can recover costs associated with enforcing agreements. Franchisees should be aware of these potential costs and factor them into their financial planning.