Do Owners have personal liability for obligations in the Beverly Anns Cookie Franchise Agreement?

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, under the Franchise Owner Agreement, the owners, officers, agents, representatives, nor any individuals associated with the franchisee will not be personally liable to Owners for any reason. This stipulation is outlined in section 8.8, titled "No Personal Liability," of the Franchise Owner Agreement. This agreement clarifies that the fulfillment of obligations written in the Franchise Agreement or the Franchise Owner Agreement, or based on any oral communications which may be ruled to be binding in a court of law, shall be the sole responsibility of the franchisee entity.

This provision offers a significant protection to the individual owners of a Beverly Anns Cookie franchise by shielding their personal assets from business liabilities. Typically, without such a clause, franchise owners could be held personally responsible for the debts and obligations of the franchise, potentially putting their personal savings and property at risk. The Franchise Owner Agreement aims to limit the personal financial exposure of the owners, ensuring that only the business entity is liable.

It is important to note that section 8.9 of the Franchise Owner Agreement states that in the event of any discrepancy between the Franchise Owner Agreement and the Franchise Agreement, the Franchise Owner Agreement shall control. This clause reinforces the importance of the Franchise Owner Agreement in defining the liabilities and responsibilities of the parties involved. Prospective franchisees should carefully review both agreements to fully understand their rights and obligations and how they are protected from personal liability.