Are Principal Owners required to execute a guaranty for the Beyond Juicery Eatery agreement?
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 Beyond Juicery Eatery's 2025 Franchise Disclosure Document, Principal Owners are required to execute a guaranty for the Franchise Agreement. The agreement states that both the franchisee and each Principal Owner jointly and severally, personally guarantee the performance of obligations under the agreement. They must also execute the form of Guaranty attached as Exhibit E to the Franchise Disclosure Document.
Even if a Principal Owner fails to execute the guaranty form, the personal guaranty contained in the agreement remains valid and enforceable. Furthermore, any person or entity that becomes a Principal Owner after the agreement's date must execute the guaranty form within ten days of becoming a Principal Owner. However, they automatically acquire all obligations of a Principal Owner under the agreement from the moment they become a Principal Owner.
This requirement ensures that Beyond Juicery Eatery has recourse to the personal assets of the Principal Owners, not just the franchisee entity, in case of default or non-compliance with the Franchise Agreement. This is a common practice in franchising, as it provides an additional layer of security for the franchisor. Prospective franchisees should carefully review Exhibit E and understand the full extent of the personal guarantee before signing the Franchise Agreement.