Do California laws for the protection of franchisees automatically apply to the Bombs Away Guaranty?

According to Bombs Away's 2024 Franchise Disclosure Document, California laws designed to protect franchisees or business opportunity purchasers do not automatically apply to the Guaranty. These laws will only apply if the jurisdictional requirements are independently met, without relying on the specific section of the agreement. This means that a guarantor cannot assume they are protected by California franchise law simply by virtue of the agreement being governed by California law.

This provision affects the rights of the guarantor, who is typically an owner of the franchisee entity. The guarantor is personally liable for the franchisee's obligations to Bombs Away. This clause ensures that Bombs Away can enforce the guaranty under its terms unless the guarantor can independently demonstrate they are entitled to protection under California franchise law, irrespective of this specific clause.

Prospective Bombs Away franchisees should be aware that this clause is designed to limit the applicability of California franchise law to the guaranty agreement. Franchisees should seek legal counsel to fully understand the implications of this provision and determine what steps, if any, they can take to ensure they receive the protections afforded by California law.