Does the Brueggers Bagels Franchise Agreement include a Guaranty agreement as an exhibit?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT A - PREMISES, MANAGEMENT AND OWNERSHIP
EXHIBIT B - GUARANTY
EXHIBIT C - CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the franchise agreement includes a Guaranty agreement as an exhibit. Specifically, Exhibit B to the Franchise Agreement is titled "GUARANTEE, INDEMNIFICATION, AND ACKNOWLEDGMENT." This exhibit requires the franchisee to guarantee all obligations under the agreement.
If the franchisee is a corporation, partnership, or limited liability company, the owners identified on Exhibit A must execute Brueggers Bagels' standard form of Guaranty. Furthermore, each person who is or becomes an owner, director, or officer of the franchisee must execute a Guaranty, undertaking to be bound jointly and severally by the terms of the Franchise Agreement. The current form of Guaranty is attached to the Agreement as Exhibit B.
In community property states, Brueggers Bagels may request that the guarantor's spouse also execute a Guaranty. This ensures that the franchisor has recourse to the couple's community property in the event of a default by the franchisee. Prospective franchisees should carefully review the Guaranty to understand the full extent of their personal liability and consult with legal counsel to assess the implications.