What agreement must the Designated Principal execute as part of their role with a Buff City Soap Developer?

According to Buff City Soap's 2025 Franchise Disclosure Document, if the franchisee is not publicly traded, each Principal must execute and deliver to Buff City Soap a Guaranty and Undertaking of Obligations. This agreement is in the form attached to the FDD as Exhibit B.

This requirement ensures that the Principals of the franchisee company are personally committed to upholding the obligations of the franchise agreement. By signing the Guaranty and Undertaking of Obligations, the Principals agree to be held personally liable for the franchisee's debts and other obligations to Buff City Soap. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and encourages the franchisee's leadership to actively manage the business in accordance with the franchise agreement.

Prospective Buff City Soap franchisees should carefully review Exhibit B and understand the full scope of their personal liability before signing the agreement. They should also consult with an attorney or financial advisor to assess the potential risks and implications of providing a personal guarantee for the franchise's obligations.