What specific performance is the Guarantor unconditionally guaranteeing on behalf of the Developer in the Bft Multi-Unit Agreement?
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 unconditionally guarantees the full and timely performance of each obligation undertaken by the Developer under the terms of the Multi-Unit Agreement. This guarantee is made to BFT Franchise SPV, LLC (the Franchisor) and its successors and assigns. The guarantee is part of the consideration for the Franchisor entering into the Multi-Unit Agreement with the Developer.
In practical terms, this means that if the Developer fails to meet any of their obligations under the Multi-Unit Agreement, the Guarantor is responsible for ensuring those obligations are fulfilled. This could include financial obligations, such as making payments, or operational obligations, such as adhering to Bft's standards and procedures. The Guarantor's responsibility is "full and timely performance," meaning they must ensure the Developer's obligations are met completely and on schedule.
This guarantee remains in effect until the Multi-Unit Agreement expires or is terminated, with the exception that the guarantee continues for obligations and liabilities arising from events occurring before the expiration or termination date, or those triggered by or surviving the expiration or termination of the Multi-Unit Agreement. A prospective franchisee acting as a guarantor should carefully review the Multi-Unit Agreement to fully understand the scope of the obligations they are guaranteeing, as well as the conditions under which the guarantee may be invoked.