What agreement is referenced in the Black Bear Diner Guaranty and Assumption of Obligations?

According to the 2025 Black Bear Diner Franchise Disclosure Document, the Personal Guarantors, as specified in Section 3.3 of the Franchise Agreement, are required to sign the Guarantee and Assumption of Obligations. This means that individuals designated as Personal Guarantors take on the responsibility of guaranteeing the franchisee's obligations under the Franchise Agreement.

This requirement is a common practice in franchising, where franchisors seek additional security to ensure franchisees fulfill their financial and operational commitments. By having Personal Guarantors, Black Bear Diner aims to mitigate the risk of franchisees defaulting on their obligations. This guarantee provides Black Bear Diner with recourse against the personal assets of the guarantors if the franchisee fails to meet the terms of the Franchise Agreement.

For a prospective Black Bear Diner franchisee, this means that certain individuals, likely key stakeholders or owners, will need to sign a Guarantee and Assumption of Obligations, potentially putting their personal assets at risk. It is crucial for franchisees and their Personal Guarantors to fully understand the terms of the Franchise Agreement and the implications of the guarantee before signing. Franchisees should seek legal counsel to assess the risks and obligations associated with the guarantee.