What is the agreement that the Guarantor is providing an unconditional guarantee for regarding Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| For value received, and in consideration for, and as an inducement to BFT Franchise SPV, LLC (the | |
|---|---|
| "Franchisor") to execute the Multi-Unit Agreement | |
| (the "Multi-Unit | |
| Agreement"), dated | |
| , 20 (the "Effective Date"), by and between Franchisor and or his | |
| assignee, if a partnership, corporation or limited liability company is later formed (the "Developer"), the | |
| undersigned (each a "Guarantor"), jointly and severally, hereby unconditionally guarantee to Franchisor | |
| and its successors and assigns the full and timely performance by Developer of each obligation undertaken | |
| by Developer under the terms of the Multi-Unit Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Guarantor is providing an unconditional guarantee to Bft Franchise SPV, LLC for the full and timely performance of each obligation undertaken by the Developer under the terms of the Multi-Unit Agreement. This guarantee is made in consideration for the Franchisor entering into the Multi-Unit Agreement with the Developer. The Multi-Unit Agreement is dated as of the Effective Date.
This means that if the Developer fails to meet their obligations under the Multi-Unit Agreement, the Guarantor is responsible for ensuring those obligations are fulfilled. This could include financial obligations, performance standards, or any other requirements outlined in the Multi-Unit Agreement. Bft can demand immediate payment from the Guarantor for any payments the Developer is required to make under the Multi-Unit Agreement.
The Guarantor waives any right to require Bft to first pursue the Developer for payment or exhaust any security from the Developer before seeking fulfillment from the Guarantor. The Guarantor is also bound by any amendments or changes made to the Multi-Unit Agreement, even without direct notice. Furthermore, the Guarantor agrees to defend, indemnify, and hold Bft harmless from any losses, damages, liabilities, costs, and expenses arising from the Developer's failure to perform their obligations under the Multi-Unit Agreement.
The Guarantor also acknowledges and agrees to be individually bound by all obligations and covenants of the Developer contained in the Multi-Unit Agreement, including those related to non-competition. If the Guarantor is a business entity, retirement or investment account, or trust, they acknowledge that if the Developer is delinquent in payment of any amounts guaranteed, no dividends or distributions may be made by the Guarantor to its owners, accountholders, or beneficiaries while the delinquency exists, subject to applicable law.