Who benefits from the guaranty provided in the 'THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS' related to Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
"Personal Guarantors" means those persons as specified in Section 3.3 who are required to sign the Guarantee and Assumption of Obligations in Exhibit C;
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the 'Guarantee and Assumption of Obligations' in Exhibit C of the Black Bear Diner franchise agreement is signed by 'Personal Guarantors,' as specified in Section 3.3 of the agreement.
According to the FDD, 'Personal Guarantors' are those individuals required to sign the Guarantee and Assumption of Obligations in Exhibit C. This implies that Black Bear Diner requires certain individuals, likely principals or owners with significant equity in the franchisee entity, to personally guarantee the franchisee's obligations under the franchise agreement.
In essence, this guaranty benefits Black Bear Diner by providing an additional layer of security. If the franchisee entity fails to meet its financial or contractual obligations, Black Bear Diner can pursue the personal guarantors for fulfillment of those obligations. This is a common practice in franchising, especially when the franchisee is a business entity with limited assets or operating history.