What specific agreement is the Guaranty and Assumption of Obligations related to for a Big Apple Bagels franchise?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day |
|---|
| of, 20, by |
| In consideration of, and as an inducement to, the execution of that certain BAB SYSTEMS, |
| INC. Franchise Agreement of even date herewith (the "Agreement") by BAB Systems, Inc. (the |
| "Franchisor"), each of the undersigned hereby personally and unconditionally (a) guarantees to |
| Franchisor, and its successors and assigns, for the term of the Agreement and thereafter as provided |
| in |
| the |
| Agreement, |
| that |
| ("Franchisee") |
| shall |
| punctually pay and perform each and every undertaking, |
| agreement and covenant set forth in the |
| Agreement; and (b) agrees to be personally bound by, and personally liable for the breach of, each |
| and every provision in the Agreement, both monetary obligations and obligations to take or refrain |
| from taking specific actions or to engage or refrain from engaging in specific activities, including |
| without limitation the provisions of Paragraph 9.f. and 17.d. |
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations is directly related to the Big Apple Bagels Franchise Agreement. This agreement serves as an inducement for BAB Systems, Inc. (the franchisor) to execute the Franchise Agreement.
Under this guaranty, the undersigned (likely the franchisee or its owners) personally and unconditionally guarantees to Big Apple Bagels that the franchisee will fulfill all obligations outlined in the Franchise Agreement. This includes both monetary obligations, such as paying fees, and non-monetary obligations, such as adhering to specific operational standards and refraining from certain activities.
Furthermore, the guarantor agrees to be personally bound by and liable for any breaches of the Franchise Agreement. This means that if the franchisee fails to meet their obligations, the guarantor can be held personally responsible for the franchisee's failures, reinforcing the importance of understanding all aspects of the Franchise Agreement before signing the Guaranty and Assumption of Obligations.