Under the Franchise Agreement for Brueggers Bagels, who must personally guarantee the franchisee's obligations?

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 identified on Exhibit A of the Franchise Agreement must execute the standard form of Guaranty. This means that individuals with a legal or beneficial ownership interest in the franchisee entity are required to be personally bound by the franchisee's obligations under the Franchise Agreement.

This personal guarantee extends to various obligations, including restrictions on competition, confidentiality obligations, restrictions on ownership changes, and dispute resolution provisions. By signing the Guaranty, these individuals agree to be individually bound by all of the franchisee's covenants, obligations, and promises outlined in the Franchise Agreement.

This requirement ensures that Brueggers Bagels has recourse to the personal assets of the owners should the franchisee entity fail to meet its financial or contractual obligations. It is a common practice in franchising to seek personal guarantees from owners of business entities to provide an additional layer of security for the franchisor. Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to understand who is required to provide a personal guarantee and the full extent of the obligations being guaranteed.