In the context of the Boulder Designs guarantor agreement, what is the 'Note' referring to?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
ated and complete agreement between the parties and supersedes all other negotiations, agreements, representations, and covenants, oral or written.
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- Counterpart Execution; Facsimile Signatures. This Agreement may be executed in multiple counterparts, each of which will be an original when executed, and all of which will constitute one and the same instrument.
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- Recitals. The parties acknowledge and represent that the recitals appearing at the beginning of this Agreement are true and correct, and are specifically incorporated into this Agreement .
Accepted and agreed this day of, 20 BOULDER DESIGNS FRANCHISING, LLC GUARANTOR:
Attachment A
PERSONAL GUARANTEE
| ON THIS DAY,, 20, for valuable consideration, the receipt and sufficiency of which |
|---|
| are hereby acknowledged, and in consideration of Boulder Designs Franchising, LLC, a Texas limited |
| liability company, or its affiliates, successors, and assigns |
| ("Franchisor" or "Payee") having made, or now |
| or in the future making, loans in connection with the Promissory Note, dated as of, |
| 20, |
| issued |
| to |
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs FDD, the 'Note' in the guarantor agreement refers to the Promissory Note. The guarantor is providing a guarantee to Boulder Designs for the franchisee's obligations under this Promissory Note, including any renewals or extensions. This means that if the franchisee defaults on the loan, the guarantor becomes responsible for the debt.
The Promissory Note is associated with loans made by Boulder Designs Franchising, LLC to the franchisee. The guarantor agrees to cover all costs, expenses, and reasonable attorney's fees incurred by Boulder Designs in enforcing the guarantee. This arrangement ensures that Boulder Designs has additional security for the loans they provide to franchisees, reducing their financial risk.
In essence, the guarantor's role is to ensure that Boulder Designs receives payment, even if the franchisee is unable to pay. This guarantee covers not only the principal amount of the loan but also any associated costs of collection if the franchisee defaults. Prospective franchisees should carefully consider the implications of the guarantor agreement and ensure that the guarantor fully understands their obligations and potential liabilities.