In the Boulder Designs Personal Guarantee, what is the meaning of 'Debtor'?

According to Boulder Designs' 2025 Franchise Disclosure Document, in the context of the personal guarantee, 'Debtor' refers to the individual or entity who owes money to Boulder Designs Franchising, LLC. Specifically, the document states that the guarantor promises to pay Boulder Designs Franchising, LLC, for value received, and identifies the address of the 'Debtor'.

This definition is crucial because the personal guarantee is a legal agreement where an individual (the guarantor) promises to pay the debts of another party (the debtor) if that party cannot pay. In this case, the 'Debtor' is the party taking on the debt, and the guarantor is promising to cover that debt if the debtor defaults. The document also specifies that if Boulder Designs terminates the Franchise Agreement or if the Debtor fails to make a payment of principal, interest or any installment thereof when due, and such failure continues for a period of ten (10) days, Boulder Designs may declare the entire unpaid principal balance of, and all accrued but unpaid interest on, the indebtedness evidenced by this Note immediately due and payable without notice or demand, foreclose all liens and security interests securing.

For a prospective Boulder Designs franchisee, understanding the definition of 'Debtor' is essential because it clarifies who is primarily responsible for the financial obligations outlined in the franchise agreement and associated promissory notes. If the franchisee is unable to pay, the personal guarantor becomes liable for the debt. This arrangement is a common practice in franchising, as it provides the franchisor with additional security and assurance that the financial obligations will be met.