Does the Boulder Designs Personal Guarantee state that it covers all renewals and extensions of the Note?
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 cover all renewals and extensions of the Promissory Note. The guarantor provides an unconditional guarantee to Boulder Designs for the full and prompt payment and performance of all present and future obligations of the franchisee to Boulder Designs under the Note. This explicitly includes all renewals and extensions of the Note, as well as any substitutions.
This means that if a franchisee takes out a loan (the Note) to finance their Boulder Designs franchise, and that loan is later renewed or extended, the personal guarantor's obligation continues. The guarantor's liability extends to all present and future obligations of the franchisee under the Note, ensuring that Boulder Designs has recourse to the guarantor for the entire duration of the debt, even if the original terms are altered through renewals or extensions.
Furthermore, the guarantor also agrees to cover all costs, expenses, and reasonable attorney's fees incurred by Boulder Designs in its efforts to enforce the guarantee. This provision reinforces the comprehensive nature of the guarantee, ensuring that Boulder Designs can pursue legal action to enforce its rights without incurring additional financial burdens. This aspect is particularly important for prospective franchisees to understand, as it highlights the significant financial responsibility assumed by the personal guarantor.