Does the Bumper Man franchise agreement include a Promissory Note and Personal Guaranty?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| A | State Administrators and Agents for | F | General Release |
|---|---|---|---|
| Service of Process | |||
| B | Financial Statements | G | Promissory Note and Personal Guaranty |
| C | Franchise Agreement, including Exhibits | H | Franchisee Questionnaire |
| D | Operations Manual Table of Contents | I | State Addenda to FDD |
| E | List of Bumper Man Franchisees | ||
| Dated: | |||
| -------- | -------------------------------- | ||
| Individually and as an Officer | |||
| Printed Name | |||
| of | |||
| (acorporation) | |||
| (aPartnership) | |||
| (aLimited Liability Company) |
EXHIBIT G TO FDD PROMISSORY NOTE AND PERSONAL GUARANTY
PROMISSORY NOTE
| THIS GUARANTY is made this day of,, by and among |
|---|
| Bumper Man, Inc., a Texas corporation ("BMI") and the undersigned. |
| NOW IT IS HEREBY AGREED AS FOLLOWS: |
| In consideration of BMI's entering into the Promissory Note dated with |
| , a, as Maker (the "Note"), each of the undersigned |
| owners of the outstanding ownership interests in Maker and any other parties who sign |
| counterparts of this Guaranty (referred to herein individually as a "Guarantor" and collectively |
| as "Guarantors") hereby personally and unconditionally guarantees to BMI and its successors |
| and assigns full and prompt performance by Maker of all its obligations under the Note and the |
| due and punctual payments of all sums payable at any time or times under the Note (collectively, |
| the "Obligations"), when and as the same shall become due and undertakes with BMI that if and |
| each time that Maker shall be in default of the payment of any sum whatsoever under the Note, |
| each Guarantor will, on written demand from BMI, make good the default and perform all |
| Obligations and pay all sums which may become payable under the Note as if the Guarantor(s) |
| instead of Maker were therein expressed to assume the primary Obligations therefor, together |
| with interest thereon at the rate per annum from time to time payable thereunder until payment of |
| such sums in full. The liability of the undersigned shall not be contingent or conditioned upon |
| pursuit by BMI of any remedies against Maker or any other person. |
| Each Guarantor waives: |
| (1) acceptance and notice of acceptance by BMI of the |
| foregoing |
| undertakings; |
| (2) notice |
| of |
| demand |
| for |
| payment |
| of |
| any |
| indebtedness |
| or |
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the franchise agreement includes both a Promissory Note and a Personal Guaranty. Exhibit G to the FDD is the Promissory Note, and the document references a Guaranty signed by owners of the franchise.
The Promissory Note outlines the maker's promise to pay the payee interest on the unpaid balance, with the interest rate being the lesser of 10% per annum or the maximum rate permitted by law. The note can be prepaid without penalty, with prepayments applied first to accrued interest and then to the principal. Events of default include failure to pay amounts due, defaulting on the franchise agreement, termination or expiration of the franchise agreement, or bankruptcy proceedings.
The Personal Guaranty ensures that the Guarantors (owners) personally and unconditionally guarantee the franchisee's obligations under the Promissory Note. If the franchisee defaults, the Guarantors are liable for the obligations as if they were the primary obligors. The Guarantors also waive certain notices and demands related to the obligations. This guaranty is made in consideration of Bumper Man entering into the Promissory Note with the franchisee.
These documents are legally binding and have significant financial implications for both the franchisee and the guarantors. Prospective franchisees should carefully review these documents with legal and financial counsel to fully understand their obligations and potential liabilities.