What document binds the principals to the obligations under the Bumper Man Franchise Agreement?

According to the 2025 Bumper Man FDD, the Guaranty and Undertaking of Principal's Obligations, attached as Exhibit B to the Franchise Agreement, binds the principals to the obligations under the Franchise Agreement. This means that the principals are individually, jointly, and severally responsible for fulfilling the franchisee's obligations. If the franchisee is married, the spouse must also sign this document, regardless of their interest in the franchisee entity.

This requirement ensures that Bumper Man has recourse to the personal assets of the principals if the franchise fails to meet its financial or operational obligations. It is a common practice in franchising to secure personal guarantees from the principals, especially in cases where the franchisee is a business entity with limited assets. This reduces the franchisor's risk and aligns the principals' interests with the success of the franchise.

By signing the Guaranty, the principals acknowledge that they have read and understood the terms and conditions of the Franchise Agreement. They also agree that the Guaranty remains in effect even after their death, binding their personal representatives. This ensures the continuity of the obligations and protects Bumper Man's interests. Prospective franchisees should carefully review the Guaranty and Undertaking of Principal's Obligations with their legal and financial advisors to fully understand the implications of signing this document.