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

Based on the 2025 Boulder Designs Franchise Disclosure Document, the term 'Guarantor' is used within the context of a personal guarantee. While the FDD excerpts provide information about the obligations and waivers associated with the Guarantor, it does not explicitly define who the Guarantor is. The document includes a section for the Guarantor's name and signature, implying it is a person or entity separate from the franchisee who is willing to guarantee the franchisee's obligations.

Several clauses outline the Guarantor's responsibilities, such as guaranteeing the franchisee's payments and waiving certain rights. The Guarantor's liability is primary, meaning Boulder Designs can seek recovery from the Guarantor without first exhausting remedies against the franchisee. The Guarantor also waives notice of any time extensions or indulgences granted to the franchisee and agrees that the release of any security will not affect their liability.

Prospective Boulder Designs franchisees should clarify with the franchisor who is expected to act as the Guarantor. Typically, it is an owner, partner, or major shareholder of the franchisee entity. Understanding the full scope of the Guarantor's obligations is crucial, as the Guarantor is personally liable for the franchisee's debts and performance under the Franchise Agreement. Franchisees should seek legal counsel to fully understand the implications of the personal guarantee before signing the agreement.