Under the Brueggers Bagels Development Agreement Guaranty, what is the role of the 'Guarantors'?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a corporation, partnership, or limited liability company, the owner(s) of Franchisee identified on Exhibit A to this Agreement must execute our standard form of Guaranty.
Developer is developing one or more Bruegger's ("Bakeries) pursuant to a Development Agreement (the "Development Agreement") with BRUEGGER'S FRANCHISE CORPORATION ("BFC").
The Development Agreement requires persons with legal or beneficial ownership interests in Developer to be personally bound by Developer's obligations under the Development Agreement, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions.
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 the 2025 Brueggers Bagels Franchise Disclosure Document, if the franchisee is a corporation, partnership, or limited liability company, the owners of the franchisee must execute a standard form of Guaranty. This means that the individuals who own the business entity are personally guaranteeing the obligations of the business under the Development Agreement.
The Development Agreement requires individuals with legal or beneficial ownership interests in the Developer to be personally bound by the Developer's obligations. These obligations include restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions. By signing the Guaranty, the owners agree to be held personally liable for the business's adherence to these terms.
If a Guarantor resides in a community property state, they must ensure that their spouse also executes the Guaranty. Upon the death of a Guarantor, their estate will be bound by the Guaranty, but only for obligations existing at the time of death. The obligations of the surviving Guarantors will continue in full force and effect.