Under the Brueggers Bagels Development Agreement Guaranty, what specific obligations and liabilities of the Guarantors remain in effect after termination?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Guarantee shall terminate upon the termination or expiration of all obligations of Franchisee under the Agreement and/or any other agreements between Franchisee and Franchisor, except that all obligations and liabilities of the undersigned which arose from events which occurred on or before the effective date of such termination shall remain in full force and effect until satisfied or discharged by the undersigned, and all covenants which by their terms continue in force after the expiration or termination of the Agreement shall remain in force according to their terms. Upon the death of an individual guarantor, the estate of such guarantor shall be bound by this Guarantee, but only for defaults and obligations under this Agreement existing at the time of death; and the obligations of the other guarantors will continue in full force and effect.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, the Guaranty provided by individuals associated with a Brueggers Bagels franchise (such as owners, partners, or members) remains in effect even after the termination or expiration of the Development Agreement under specific conditions.
Specifically, all obligations and liabilities of the Guarantors that stem from events occurring on or before the termination date remain fully enforceable until the Guarantors fulfill or discharge them. Additionally, any covenants within the Development Agreement that are explicitly designed to continue beyond the agreement's termination date will remain in force according to their original terms.
This means that even after the Brueggers Bagels Development Agreement ends, the Guarantors are still responsible for any outstanding debts, liabilities, or breaches of contract that occurred during the agreement's term. Furthermore, any clauses related to non-competition, confidentiality, or other ongoing responsibilities will continue to bind the Guarantors as specified in the original agreement. The estate of a deceased guarantor will be responsible for obligations existing at the time of death, while the obligations of surviving guarantors remain in full effect.