In the Boulder Designs franchise agreement, what information is required for each personal guarantor?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
POSES WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO SUCH PERSON TO INDUCE THE SIGNING OF THIS AGREEMENT.**
IN WITNESS WHEREOF, Franchisee has caused this Agreement to be executed by its duly authorized officer, manager or executive and Individual has executed this Agreement, all being done in triplicate originals with one original being delivered to each party and Company as of the Effective Date.
| INDIVIDUAL: | FRANCHISEE: | |
|---|---|---|
| By: | ||
| Name, Individually | Name/Title |
TO THE FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
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- I have read the Franchise Agreement between BOULDER DESIGNS FRANCHISING, LLC and (the "Franchisee").
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- I own a beneficial interest in the Franchisee, and would be considered an "Owner" within the definition contained in Franchise Agreement.
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- I understand that, were it not for this Guaranty and Assumption of Obligation ("Guaranty"), Franchisor would not have agreed to enter into the Franchise Agreement with the Franchisee.
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- I will comply with all of the provisions contained in Article 7 of the Franchise Agreement concerning the use of the Confidential Information. I will maintain the confidentiality of all Confidential Information disclosed to me. I agree to use the Confidential Information only for the purposes authorized under the Franchise Agreement. I further agree not to disclose any of the Confidential Information, except (a) to the Franchisee's employees on a need to know basis, (b) to the Franchisee's and my legal and tax professionals to the extent necessary for me to meet my legal obligations, and (c) as otherwise may be required by law.
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- I will comply with all of the provisions contained in Article 18 of the Franchise Agreement concerning the assignment of my interests in the Franchisee.
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- While I am an "Owner" of the Franchisee and, for a two-year period after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first), I will not:
- 6.1 divert or attempt to divert any present or prospective customer of any BOULDER DESIGNS franchises to any competitor or do anything to harm the goodwill associated with the Marks and the System;
- 6.2 employ or seek to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment; or
- 6.3 own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in (as owner or otherwise) or relationship or association with, any business conducting landscape architecture or outdoor living construction services, other than another Boulder Designs franchise operated pursuant to a valid franchise agreement with Franchisor. This restriction shall apply, while I am an Owner, to any location within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which Franchisor or its Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks. It will apply for two years after I cease to be an Owner (or two years after termination or expiration of the Franchise Agreement, whichever occurs first) to any location that is, or is intended to be, located in the Territory (as defined in the Franchise Agreement) or market area of any other business operating under the Boulder Designs System and Marks.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations outlines several key points for personal guarantors. As an owner with beneficial interest in the franchisee, the guarantor acknowledges that Boulder Designs would not enter the Franchise Agreement without this guarantee. The guarantor must comply with Article 7 regarding confidential information, ensuring its protection and authorized use, and Article 18 concerning the assignment of interests in the franchisee.
The guarantor agrees to not divert customers or harm the goodwill associated with Boulder Designs' marks and system, nor employ or solicit employees of Boulder Designs or its affiliates for a period of two years after ceasing to be an owner or after the termination/expiration of the Franchise Agreement. The guarantor also guarantees the full and prompt payment of all amounts owed by the franchisee under the Franchise Agreement, agreeing to pay within 14 days of notice from Boulder Designs that the franchisee has failed to make a required payment, without Boulder Designs needing to exhaust remedies against the franchisee first.
The guarantor waives trial by jury in any action related to the Franchise Agreement and acknowledges that Boulder Designs' rights under the Guaranty are in addition to other available remedies. Notices to the guarantor are deemed delivered upon hand delivery, one business day after electronic transmission, or one day after deposit with a recognized overnight delivery service. These provisions ensure that the guarantor is fully aware of their obligations and the potential liabilities they assume by guaranteeing the franchisee's performance.
This is a fairly standard requirement in franchising, as franchisors want to ensure that franchisees fulfill their financial obligations. The personal guarantee provides Boulder Designs with an additional layer of security, as it can pursue the guarantor's assets if the franchisee defaults. Prospective franchisees should carefully review the Guaranty and Assumption of Obligations with their legal and financial advisors to fully understand the implications of providing a personal guarantee.