Does the Boulder Designs Personal Guarantee cover loans made in the future?
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 Boulder Designs' 2025 Franchise Disclosure Document, the Personal Guarantee does extend to loans made in the future. The guarantor is responsible for the full and prompt payment of all present and future obligations of the franchisee to Boulder Designs under the promissory note. This includes all renewals, extensions, and substitutions of the note.
This means that if Boulder Designs makes any loans to the franchisee, whether at the time of the agreement or later, the guarantor is on the hook for those loans. The guarantor's obligation is unconditional, meaning they cannot avoid responsibility based on factors like Boulder Designs granting the franchisee more time to pay or modifying other guarantees.
This is a significant commitment for the guarantor, as they are essentially vouching for the franchisee's financial responsibility to Boulder Designs. Prospective franchisees should carefully consider the implications of the Personal Guarantee and ensure that anyone acting as a guarantor fully understands the extent of their obligations, including future loans and modifications to the original agreement.