Under the Boulder Designs Personal Guarantee, what is waived in the event of a default by the Franchisee?

According to Boulder Designs' 2025 Franchise Disclosure Document, the personal guarantee requires the guarantor to waive trial by jury in any action involving Boulder Designs that arises out of or is related to the Franchise Agreement. This means that the guarantor, who is typically the franchisee or a related party, gives up their right to have a jury decide any disputes related to the franchise agreement; instead, the case would be decided by a judge. This waiver is a significant legal concession.

This waiver applies to any action, proceeding, or counterclaim, whether at law or in equity, involving Boulder Designs. The scope is broad, covering any issue that arises from the Franchise Agreement or the performance of any party under the agreement. This includes not only the franchisee's performance but also Boulder Designs' obligations.

For a prospective Boulder Designs franchisee, this means that if a dispute arises that leads to a lawsuit, they (or whoever signs the personal guarantee) will not have the option of a jury trial. This can be a disadvantage, as jury trials are sometimes seen as more favorable to individuals than bench trials (trials before a judge). It is crucial for anyone considering signing a personal guarantee to understand this waiver and its potential implications, and to seek legal advice if necessary.