Who must execute and deliver a covenant in the form prescribed by Beyond Juicery Eatery?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.08 You and each Principal Owner, jointly and severally, personally guarantee your performance of your obligations under this Agreement and must execute the form of Guaranty attached as Exhibit E to the Franchise Disclosure Document.
Each Principal Owner hereby agrees and acknowledges that the failure to execute our form Guaranty shall not render the personal guaranty contained in this Agreement void or unenforceable.
Any person or entity that at any time after the date of this Agreement becomes a Principal Owner pursuant to the provisions of this Agreement must execute the form Guaranty within ten (10) days from the date such person or entity becomes a Principal Owner, provided, however, that any person or entity who becomes a Principal Owner shall automatically acquire all of the obligations of a Principal Owner under this Agreement at the time that such person or entity becomes a Principal Owner.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 FDD, Beyond Juicery Eatery requires that the franchisee, along with each Principal Owner, must execute the form of guaranty. This guaranty is attached as Exhibit E to the Franchise Disclosure Document. Furthermore, any person or entity that becomes a Principal Owner after the date of the agreement must execute this form Guaranty within ten days of becoming a Principal Owner.
This requirement ensures that Beyond Juicery Eatery has a personal guarantee from the franchisee and each Principal Owner for the performance of the obligations under the Franchise Agreement. This means that these individuals are personally liable for the financial and operational commitments made by the franchise. The inclusion of Principal Owners broadens the scope of liability beyond just the franchisee entity, which is a common practice in franchising to ensure accountability.
The stipulation that new Principal Owners must also execute the guaranty within ten days of acquiring that status ensures that the personal guarantee remains current and comprehensive throughout the term of the agreement. Even if a Principal Owner fails to execute the form Guaranty, they still acquire all the obligations of a Principal Owner under the agreement, meaning they are still bound by the terms of the personal guarantee.
Prospective franchisees should carefully review Exhibit E of the Franchise Disclosure Document to fully understand the scope and implications of the personal guarantee. They should also be aware of the potential liabilities and obligations they are undertaking, and consult with legal and financial advisors to assess the risks involved.