Under the Brueggers Bagels License Agreement, what obligations of the Company are unconditionally guaranteed by the Guarantors to the Licensor?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, the Guarantors unconditionally guarantee to the Licensor (Bruegger's Bagels Franchise Corporation) that all of the Company's obligations under the License Agreement, and under other agreements or arrangements between the Company and BFC, will be punctually paid and performed. This means that the Guarantors are personally liable for ensuring the Company fulfills all its financial and operational responsibilities to Brueggers Bagels as outlined in the License Agreement and any other related agreements.

This guarantee extends to all obligations, implying that if the Company fails to meet any requirement, whether it be monetary payments, adherence to operational standards, or any other commitment specified in the agreements, the Guarantors are responsible for stepping in to ensure these obligations are met. This provides Brueggers Bagels with a security net, knowing that there are individuals who have committed to ensuring the franchisee's compliance.

For a prospective Brueggers Bagels franchisee, this requirement means that individuals with significant ownership or control within the franchisee company must be willing to personally guarantee the company's performance. This is a common practice in franchising, as it ensures that the franchisor has recourse beyond the business entity itself. The personal guarantee can be a significant consideration for potential franchisees, as it puts their personal assets at risk if the business fails to meet its obligations. Franchisees should carefully consider the implications of this personal guarantee and seek legal counsel to fully understand their obligations and potential liabilities.