What is the 'Guaranty and Non-Compete Agreement' referenced in the Bombs Away FDD attached to?
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.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 26–27)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the 'Guaranty and Non-Compete Agreement' is attached to the Franchise Agreement as Attachment 2. This agreement is executed by a guarantor who owns an equity interest in the franchisee, ensuring the franchisee fulfills all obligations outlined in the Franchise Agreement. The guarantor's commitment is essential for Bombs Away Franchising to enter into the Franchise Agreement with the franchisee.
The guarantor unconditionally guarantees that the franchisee will adhere to every undertaking, agreement, and covenant detailed in the Franchise Agreement. This guarantee extends to all liabilities and obligations the franchisee owes to Bombs Away Franchising, regardless of whether they are specifically mentioned in the Franchise Agreement. If the franchisee fails to meet these obligations, the guarantor is responsible for rendering the required payment or performance upon demand from Bombs Away Franchising.
Furthermore, the Guaranty includes covenants not to compete, restricting the guarantor from engaging in any competitive activities during the term of the Franchise Agreement and for two years after its expiration or termination. This restriction applies within the franchisee's territory and any other Bombs Away business territory. The guarantor also agrees to protect Bombs Away Franchising's confidential information, acknowledging that all customer data generated is the property of Bombs Away Franchising. This obligation to protect confidential information survives the termination or expiration of the Franchise Agreement indefinitely.
The Guaranty also stipulates that the guarantor's liability will not be affected by any amendments to the Franchise Agreement, extensions of time granted to the franchisee, or acceptance of partial payments. The agreement is governed by California law, and any disputes will be resolved according to the dispute resolution provisions in the Franchise Agreement. If multiple guarantors sign the agreement, they will have joint and several liability, meaning each guarantor is fully responsible for the entire obligation.