What is the defined role of the person executing the Guaranty and Non-Compete Agreement for Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
od for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
BOMBS AWAY FRANCHISING, LLC Agreed to by:
Attachment 2 to Franchise Agreement
GUARANTY AND NON-COMPETE AGREEMENT
This Guaranty and Non-Compete Agreement (this "Guaranty") is executed by the undersigned person(s) (each, a "Guarantor") in favor of Bombs Away Franchising, LLC, a Wyoming Limited Liability Company ("Bombs Away Franchising").
Background Statement: _______________________ ("Franchisee") desires to enter into a Franchise Agreement with Bombs Away Franchising for the franchise of a Bombs Away business (the "Franchise Agreement"; capitalized terms used but not defined in this Guaranty have the meanings given in the Franchise Agreement). Guarantor owns an equity interest in Franchisee. Guarantor is executing this Guaranty in order to induce Bombs Away Franchising to enter into the Franchise Agreement.
Guarantor agrees as follows:
- **1.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the person executing the Guaranty and Non-Compete Agreement, known as the "Guarantor," plays a crucial role in ensuring the franchisee's obligations are met. The Guarantor owns an equity interest in the Franchisee and is executing the Guaranty to induce Bombs Away Franchising, LLC to enter into the Franchise Agreement. This agreement ensures that the Franchisee adheres to the terms outlined in the Franchise Agreement. The Guarantor guarantees that the Franchisee will fulfill all payment and performance obligations detailed in the Franchise Agreement, as well as any other liabilities to Bombs Away Franchising. This obligation remains whether or not it is specifically outlined in the Franchise Agreement.
The Guarantor is responsible for rendering any payment or performance required under the Franchise Agreement or any other agreement between the Franchisee and Bombs Away Franchising upon demand from Bombs Away Franchising. The Guarantor also agrees to protect confidential information related to the Bombs Away business, adhering to security procedures, limiting disclosure to employees, and preventing unauthorized use or reproduction of such information. This obligation extends even after the termination or expiration of the Franchise Agreement.
Furthermore, the Guarantor is subject to covenants not to compete, both during the term of the Franchise Agreement and for two years after its expiration or termination. During the franchise term, the Guarantor cannot have any ownership interest in, lend money to, provide services to, or be employed by any competitor. Post-term, this restriction applies within the Franchisee's territory or the territory of any other Bombs Away business operating at the time of termination or transfer. The Guarantor's obligations under this agreement are not affected by any amendments to the Franchise Agreement, extensions of time granted to the Franchisee, or acceptance of partial payments. If the Guarantor fails to comply with the non-compete obligations, the restrictive period is extended by one day for each day of noncompliance.