Does the Bhc Guarantee of Master Franchise Agreement require the undersigned to be personally bound by the Master Franchise Agreement?

According to Bhc's 2025 Franchise Disclosure Document, the Guarantee of Master Franchise Agreement does require the undersigned to be personally bound by the Master Franchise Agreement. The document states that each person who executes the Guarantee of Master Franchise Agreement agrees to be personally bound by every covenant, term, condition, agreement, and undertaking set forth in the Master Franchise Agreement and any other agreements between the Master Franchisee and Bhc. This means that the person signing the guarantee is taking on personal responsibility for the Master Franchisee's obligations under the agreement.

This personal guarantee has significant implications for the individual signing it. If the Master Franchisee fails to meet its obligations, Bhc can pursue the guarantor directly for any damages or unfulfilled responsibilities. This could include financial obligations, adherence to operational standards, or any other aspect of the Master Franchise Agreement. The guarantor's personal assets could be at risk if the Master Franchisee defaults.

Furthermore, the guarantee remains in effect even if the terms of the Master Franchise Agreement are altered or amended. The undersigned agrees to be bound by any changes made to the agreement without requiring their consent or notification. This places a significant responsibility on the guarantor to stay informed about the Master Franchisee's operations and any modifications to the franchise agreement.

Bhc also has the right to proceed directly against the undersigned without first pursuing action against the Master Franchisee. This clause provides Bhc with a streamlined approach to recovering damages in the event of a breach or default, making the personal guarantee a critical component of the Master Franchise Agreement.