Who benefits from the personal guarantee provided in the Big Blue Swim School Franchise Agreement?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
ng the Franchise Agreement term if, with our prior written permission, which we have no BIG liability company BLUE SWIM SCHOOL FRANCHISING, LLC, an Illinois limited [INSERT FRANCHISEE NAME], a(n) [insert state of formation]
EXHIBIT B TO THE BIG BLUE SWIM SCHOOL FRANCHISING, LLC FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this
| , by | |
|---|---|
| In consideration of, and as an inducement to, the execution of that certain Franchise | |
| Agreement (the "Agreement") on this date by BIG BLUE SWIM SCHOOL FRANCHISING, | |
| LLC, an Illinois limited liability company ("Franchisor"), each of the undersigned personally | |
| and unconditionally (a) guarantees to Franchisor and its successors and assigns, for the term of the | |
| Agreement (including, without limitation, any extensions of its term) and afterward as provided in | |
| the Agreement, that ("Franchisee") will punctually pay and | |
| perform each and every undertaking, agreement, and covenant set forth in the Agreement | |
| (including, without limitation, any amendments or modifications of the Agreement) and (b) agrees | |
| to be personally bound by, and personally liable for the breach of, each and every provision in the | |
| Agreement (incl |
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Big Blue Swim School Franchise Disclosure Document, the personal guarantee provided by the franchisee benefits Big Blue Swim School Franchising, LLC, and its successors and assigns. This guarantee ensures that the franchisee will fulfill all obligations outlined in the Franchise Agreement, including making timely payments and adhering to all agreements and covenants. The guarantee remains in effect for the entire term of the agreement, including any extensions, and even after the agreement concludes, as specified within the agreement itself.
This means that if the Big Blue Swim School franchisee fails to meet their financial or operational obligations, Big Blue Swim School Franchising, LLC, can seek recourse directly from the franchisee's personal assets. This personal guarantee covers a wide range of responsibilities, including monetary obligations and specific actions the franchisee must take or avoid. It also encompasses any amendments or modifications made to the original Franchise Agreement.
For a prospective Big Blue Swim School franchisee, this signifies a substantial personal financial risk. Before signing the Franchise Agreement, it is crucial to fully understand the scope of the personal guarantee and its potential implications. Franchisees should seek legal counsel to review the agreement and assess their personal liability in case of business challenges or failures. This is a common practice in franchising, where franchisors seek to ensure franchisees are fully committed to the business and adhere to the franchise terms, thereby protecting the brand and the franchise system.