Is a guaranty of the franchisee's performance required from the assignee of a Beyond Juicery Eatery franchise?
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 Beyond Juicery Eatery FDD, the standard Franchise Agreement requires both the franchisee and each Principal Owner to personally guarantee the franchisee's performance of their obligations under the agreement. Specifically, they must execute a Guaranty form, which is included as Exhibit E to the Franchise Disclosure Document. Even if the Guaranty form is not executed, the personal guaranty contained within the agreement remains valid and enforceable.
Furthermore, any person or entity that becomes a Principal Owner after the initial agreement date is also required to execute the Guaranty form within ten days of becoming a Principal Owner. This ensures that all Principal Owners are bound by the guaranty, regardless of when they become involved in the Beyond Juicery Eatery franchise. The FDD states that acquiring the obligations of a Principal Owner happens automatically when a person or entity becomes a Principal Owner.
However, the FDD excerpt does not explicitly address whether a guaranty is required from an assignee of the franchise. The document outlines the obligations of the franchisee and principal owners regarding a guaranty, but it does not specify whether these obligations extend to assignees. A prospective franchisee should seek clarification from Beyond Juicery Eatery regarding whether an assignee of a Beyond Juicery Eatery franchise is required to provide a guaranty of performance.