Under the Big Apple Bagels Guaranty and Assumption of Obligations, what agreement are the undersigned guaranteeing the franchisee's performance of?
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 the 2025 Big Apple Bagels Franchise Disclosure Document, the Guaranty and Assumption of Obligations ensures that the undersigned are guaranteeing the franchisee's performance of the Big Apple Bagels Franchise Agreement. Specifically, the guarantor is guaranteeing that the franchisee will punctually pay and perform each undertaking, agreement, and covenant outlined in the Franchise Agreement. This includes both monetary obligations, and the obligations to take or refrain from specific actions.
This means that if the franchisee fails to meet their obligations under the Franchise Agreement, the guarantor becomes personally liable for those obligations. This personal liability extends to every provision in the Agreement, including financial responsibilities like royalty fees and marketing fund contributions, as well as non-monetary obligations such as adhering to brand standards and operational procedures.
The guarantor also agrees to be personally bound by and liable for any breaches of the Franchise Agreement. This includes, without limitation, the provisions of Paragraph 9.f. and 17.d. of the agreement. The guarantor's obligations continue for the term of the Franchise Agreement and beyond, as specified in the agreement itself.