Must a controlled entity expressly assume the obligations of the agreement with Beyond Juicery Eatery?

Based on the 2025 Franchise Disclosure Document, any person or entity that becomes a Principal Owner of a Beyond Juicery Eatery franchise after the date of the Franchise Agreement must execute the form of Guaranty within ten days of becoming a Principal Owner. However, even if they fail to execute the Guaranty form, they automatically acquire all the obligations of a Principal Owner under the Franchise Agreement at the time they become a Principal Owner. This means that the obligations are automatically assumed upon becoming a Principal Owner, regardless of whether the Guaranty form is signed.

This requirement ensures that Beyond Juicery Eatery can enforce the terms of the Franchise Agreement against anyone who has a significant ownership stake in the franchise. By automatically acquiring the obligations, the brand aims to prevent individuals from avoiding responsibility simply by not signing a separate guaranty. The ten-day window to execute the Guaranty form provides a formal process for acknowledging these obligations, but the obligations themselves are not contingent on this signature.

For a prospective franchisee, this clause highlights the importance of understanding who qualifies as a Principal Owner and the implications of that role. It also emphasizes the need to ensure that any new Principal Owners are aware of their obligations and the requirement to execute the Guaranty form. This automatic assumption of obligations is a protective measure for Beyond Juicery Eatery, ensuring that all key individuals are bound by the agreement, which is a fairly standard practice in franchising to protect the brand and system standards.