Who guarantees Bft's obligations under the Franchise Agreements and Multi-Unit Agreements?
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 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, the obligations of the 'Developer' under the Multi-Unit Agreement are guaranteed by the 'Guarantor.' The Guarantor, jointly and severally, unconditionally guarantees the full and timely performance of each obligation undertaken by the Developer under the terms of the Multi-Unit Agreement. This guarantee extends to Bft Franchise SPV, LLC, the Franchisor, and its successors and assigns.
The Guarantor is obligated to immediately make each payment required of the Developer upon demand by Bft. The Guarantor also waives any right to require Bft to proceed against the Developer for any payment, security, or remedy. Bft may extend, modify, or release any indebtedness or obligation of the Developer without notice to the Guarantor, without affecting the Guarantor's obligations under the guarantee.
The Guarantor also agrees to defend, indemnify, and hold Bft harmless against any losses, damages, liabilities, costs, and expenses (including attorney's fees) resulting from any failure by the Developer to perform any obligation under the Multi-Unit Agreement. The Guarantor acknowledges being individually bound by all obligations and covenants of the Developer in the Multi-Unit Agreement, including those related to non-competition.
If the Guarantor is a business entity, retirement or investment account, or trust, it acknowledges that if the Developer is delinquent in payment of any guaranteed amounts, no dividends or distributions may be made by the Guarantor to its owners, accountholders, or beneficiaries while the delinquency exists, subject to applicable law. The guarantee remains in effect even if Bft takes action against the Developer or waives any rights or remedies, and it is binding upon each Guarantor and their estate, executors, administrators, heirs, beneficiaries, and successors in interest.