What document must each principal of a Bumper Man franchisee execute and deliver to the franchisor?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) Each Principal will execute and deliver to Franchisor a Guaranty and Undertaking of Obligations in the form attached hereto as Exhibit B. Any spouse or relative of Franchisee who Franchisor has authorized to perform any obligations relating to the Bumper Business will also execute and deliver to Franchisor a Guaranty and Undertaking of Obligations.
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
Principal represents and warrants that the following is a complete and accurate list of all Principals of Franchisee and a full description of the nature and extent of each Principal's Equity Interest in Franchisee. Franchisee, and Principal as to its Equity Interest, represents and warrants that Principal is the sole and exclusive legal and beneficial owner of its Equity Interest in Franchisee, free and clear of all liens, restrictions, agreements and encumbrances of any kind or nature, other than those required or permitted by this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, each principal holding equity interest in a Bumper Man franchise must execute and deliver a Guaranty and Undertaking of Obligations to the franchisor. Additionally, any spouse or relative of the franchisee who is authorized by Bumper Man to perform obligations related to the Bumper Man business must also execute and deliver this Guaranty and Undertaking of Obligations. This requirement ensures that the franchisor has a direct legal recourse against the individuals who own and control the franchisee entity, and those closely related to the franchisee who are involved in the business operations.
The Guaranty and Undertaking of Obligations likely holds the principal accountable for the franchisee's performance and adherence to the franchise agreement. By signing this document, the principal personally guarantees the franchisee's obligations to Bumper Man. This is a common practice in franchising, as it provides an additional layer of security for the franchisor, especially when the franchisee is a business entity rather than an individual.
Furthermore, the principal makes several acknowledgements and agreements, including that they have read the terms and conditions of the Franchise Agreement, and that the execution of the Guaranty is a condition for Bumper Man to execute the agreement. The guaranty remains in force even after the death of the principal and is binding on their personal representatives. It also continues and is enforceable regardless of any changes to the name or structure of either Bumper Man or the franchisee. The principal also warrants that they are the sole owner of their equity interest in the franchise, free of any liens or restrictions.