Does the Boulder Designs Personal Guarantee cover future obligations of the Franchisee to the Franchisor?

According to Boulder Designs' 2025 Franchise Disclosure Document, the Guaranty and Assumption of Obligations agreement ensures that the guarantor is responsible for the franchisee's obligations. As stated in the Guaranty, the guarantor guarantees the prompt and full payment of all amounts owed by the franchisee under the Franchise Agreement. This indicates that the personal guarantee covers the franchisee's financial obligations to Boulder Designs.

The guarantor's liability is primary, meaning Boulder Designs does not need to pursue the franchisee before seeking recovery from the guarantor. The guarantor waives notice of any time extensions or indulgences granted to the franchisee. The guarantee remains in effect regardless of any modifications to the obligations, or any defenses the franchisee might have.

Furthermore, the guarantor agrees to comply with specific articles of the Franchise Agreement, including those concerning confidential information and assignment of interests. The guarantor also agrees to certain non-compete restrictions during their time as an owner and for a period after they cease to be an owner. These provisions highlight that the personal guarantee extends beyond just financial obligations, encompassing adherence to key operational and competitive aspects of the franchise agreement.