Does the Boulder Designs Personal Guarantee state that it covers all substitutions for the Note?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
the undersigned, (the "Guarantor"), does hereby unconditionally guarantee to
Franchisor, its successors and assigns, full and prompt payment and performance of all present and future
obligations of the Franchisee to Franchisor under the Note including all renewals and extensions thereof or
substitutions therefor. The Guarantor also agrees to pay in addition thereto all costs, expenses and
reasonable attorney's fees at any time paid or incurred by Franchisee in endeavoring to enforce this
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 substitutions for the Promissory Note. The guarantor unconditionally guarantees the full and prompt payment and performance of all present and future obligations of the franchisee to Boulder Designs under the Note. This includes all renewals, extensions, and substitutions.
This means that if the original Promissory Note is replaced or modified in any way, the guarantor's obligation remains in effect. The guarantor is responsible for ensuring the franchisee fulfills their financial commitments to Boulder Designs, even if the terms of the Note change over time. This provision protects Boulder Designs in case the franchisee defaults on the Note, regardless of any changes made to it.
Furthermore, the guarantor also agrees to cover all costs, expenses, and reasonable attorney's fees incurred by Boulder Designs in enforcing the Personal Guarantee. This ensures that Boulder Designs can pursue legal action to recover any outstanding amounts without incurring additional financial losses. The Personal Guarantee is a critical document for Boulder Designs, as it provides an additional layer of security for the financial obligations of its franchisees.