Are the Guarantors personally liable for breaches of the nondisclosure provisions in the Body20 Initial Franchise Agreement?

According to Body20's 2025 Franchise Disclosure Document, the Guarantors are indeed personally liable for breaches of the nondisclosure provisions outlined in the Initial Franchise Agreement. Specifically, the Guarantors must comply with Section 10, which pertains to Proprietary Information, and they are liable for any breaches of these provisions. This includes aspects related to the nondisclosure and protection of Proprietary Information, as if each Guarantor were the franchisee named in the Initial Franchise Agreement.

This stipulation means that individuals acting as Guarantors for a Body20 franchise bear a significant responsibility to safeguard the franchisor's confidential information. This obligation extends to ensuring that Proprietary Information is not disclosed or misused, and any failure to uphold this responsibility can result in personal liability for the Guarantor. The personal liability extends to all provisions in Section 10 of the Initial Franchise Agreement.

For a prospective Body20 franchisee, this underscores the importance of carefully selecting Guarantors who understand and are willing to commit to these confidentiality obligations. It also highlights the need for Guarantors to thoroughly review and comprehend Section 10 of the Initial Franchise Agreement to fully grasp the scope of their responsibilities and potential liabilities. This is a common practice in franchising, where franchisors seek to protect their proprietary information through guarantees that extend personal liability to those guaranteeing the franchisee's obligations.