When does the Brueggers Bagels Development Agreement Guaranty terminate?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guaranty will terminate upon the termination or expiration of the Agreement, except that all obligations and liabilities of the Guarantors arising from events which occurred on or before the effective date of termination will remain in full force and effect until satisfied or discharged by the Guarantors, and all covenants which by their terms continue in force after the expiration or termination of the Agreement will remain in force according to their terms.
Upon the death of a Guarantor, the Guarantor's estate will be bound by this Guaranty, but only for obligations existing at the time of death. The obligations of the surviving Guarantors will continue in full force and effect.
If the Guarantor resides in a community property state, the Guarantor will cause his or her spouse, if any, to execute this Guaranty.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the Development Agreement Guaranty terminates upon the termination or expiration of the Development Agreement. However, some obligations may extend beyond the termination date.
Specifically, all obligations and liabilities of the guarantors that arise from events occurring on or before the termination date remain in full effect until they are satisfied or discharged. Additionally, any covenants within the agreement that are explicitly stated to continue after the agreement's termination will remain in force according to their terms.
In the event of a guarantor's death, their estate remains bound by the guaranty, but only for obligations that existed at the time of death. The obligations of any surviving guarantors will continue in full force. If a guarantor resides in a community property state, their spouse may also be required to execute the guaranty, indicating a shared responsibility for the obligations.