Does the Bombs Away franchise agreement require any Guaranty Agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
such as those which unreasonably restrict or limit the statute of limitation period 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. Guaranty. Guarantor hereby unconditionally guarantees to Bombs Away Franchising and its successors and assigns that Franchisee shall pay and perform every undertaking, agreement and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of Franchisee to Bombs Away Franchising, whether or not contained in the Franchise Agreement. Guarantor shall render any payment or performance required under the Franchise Agreement or any other agreement between Franchisee and Bombs Away Franchising upon demand from Bombs Away Franchising. Guarantor waives (a) acceptance and notice of acceptance by Bombs Away Franchising of this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations of Franchisee; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right Guarantor may have to require that an action be brought against Franchisee or any other person or entity as a condition of liability hereunder; (e) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guaranty by the undersigned; (f) any law which requires that Bombs Away Franchising make demand upon, assert claims against or collect from Franchisee or any other person or entity (including any other guarantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
- **2.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a Guaranty and Non-Compete Agreement is required. This agreement, executed by the Guarantor in favor of Bombs Away Franchising, ensures that the Franchisee fulfills all obligations outlined in the Franchise Agreement. The Guarantor, who owns an equity interest in the Franchisee, agrees to guarantee every undertaking, agreement, and covenant set forth in the Franchise Agreement, as well as any other liabilities of the Franchisee to Bombs Away Franchising.
The Guarantor must make any payment or performance required under the Franchise Agreement or any other agreement between the Franchisee and Bombs Away Franchising upon demand. This obligation remains in effect regardless of any amendments to the Franchise Agreement, extensions of time granted to the Franchisee, or acceptance of partial payments. The Guarantor's liability will not be diminished by these factors.
The Guaranty and Non-Compete Agreement is governed by California law, and any disputes will be resolved according to Article 17 of the Franchise Agreement. The Guarantor is responsible for all costs incurred by Bombs Away Franchising in enforcing the Guaranty, including reasonable attorney fees. If multiple Guarantors sign the agreement, they will have joint and several liability. Franchisees transferring their agreement to a corporation or limited liability company formed for ownership convenience must also provide a guaranty.