What payments does the Individual guarantee on behalf of the Franchisee under the Bevaris Alliance agreement?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 22.1 In consideration of the Franchisor entering into this agreement with the Franchisee, the Individual, as primary obligor, irrevocably and unconditionally as separate and independent obligations:
- (a) guarantees the full, prompt and complete performance by the Franchisee of each of its obligations under this agreement and the Food Service Agreements;
(b) guarantees the punctual payment of all sums payable by the Franchisee under this agreement or in consequence of any breach of the provisions of this agreement;
(c) undertakes, immediately on demand, to perform or procure the performance of all the Franchisee's obligations referred to in clause 22.1(a) and clause 22.1(b); and
(d) undertakes to pay to the Franchisor, immediately on demand and unconditionally, such sum to make good all losses, damage, costs and expenses arising out of the Franchisee's failure to perform such obligations, or pay such sums on the due date, or the Individual's failure to comply with the provisions of clause 22.1(a), clause 22.1(b) and clause 22.1(c).
22.2 Before making a demand under clause 22.1, it shall not be necessary for the Franchisor to have made a demand on, taken out proceedings against, or taken any action to enforce any security against the Franchisee or any other person.
22.3 The Individual's liability under this clause 22 shall be joint and several and shall not be reduced, discharged or adversely affected in any way, by:
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 Bevaris Alliance Franchise Disclosure Document, an individual's guarantee is required when entering into an agreement with the franchisee. The individual guarantees the franchisee's full and prompt performance of all obligations under the agreement, including any Food Service Agreements. This means the individual is on the hook if the franchisee fails to meet their contractual duties.
Specifically, the individual guarantees the punctual payment of all sums payable by the franchisee under the agreement. This includes any payments that become due because of a breach of the agreement. The individual commits to performing all the franchisee's obligations if the franchisee fails to do so.
Furthermore, the individual is responsible for covering all losses, damages, costs, and expenses that arise if the franchisee fails to fulfill their obligations or make payments on time. This also applies if the individual fails to comply with their own obligations related to guaranteeing the franchisee's performance and payments. Before demanding payment or performance from the individual, Bevaris Alliance is not required to first make a demand or take action against the franchisee. The individual's liability is joint and several, meaning they can be held fully responsible regardless of the franchisee's situation.