factual

Does the Bumper Man Franchise Agreement require a Guaranty and Undertaking of Principal's Obligations, and if so, which exhibit contains this?

Bumper_Man Franchise · 2025 FDD

Answer 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.

EXHIBIT B TO FRANCHISE AGREEMENT

GUARANTY AND UNDERTAKING OF OBLIGATIONS

This GUARANTY AND UNDERTAKING OF OBLIGATIONS ("Guaranty") dated ___________, 20 (the "Effective Date") is given to Franchisor, by each of the undersigned as a Principal of Franchisee, in consideration of and as an inducement to the execution of the attached Franchise Agreement, including any exhibits and amendments thereto ("Agreement") by and between Franchisor and Franchisee. Capitalized terms not defined in this Guaranty and Undertaking of Obligations have the meanings given in the Agreement.

Principal hereby personally and unconditionally guarantees to Franchisor and its successors and assigns, for the Term and afterward as provided in the Agreement, that Franchisee will punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement.

Principal represents that each and every representation of Franchisee made in connection with the Agreement is true, correct and complete in all respects as of the time given and as of the time of the undersigned Principal(s)' execution of this Guaranty.

Principal acknowledges that it is included in the term "Principal" as described in Section 1 of the Agreement and without limiting any guarantee of Franchisee's obligations under the Agreement, makes all covenants, representations, warranties and agreements of Principals set forth in the Agreement and is obligated to individually perform thereunder for so long as he or she qualifies as a Principal and thereafter to the extent expressly provided by the terms of the Agreement, including without limitation the representations, warranties and covenants described in the following sections of the Agreement: Section 10 (Representations, Warranties and Covenants), Section 16 (Transferability of Interest), Section 17 (Restrictive Covenants) and Section 20 (Indemnification).

Principal hereby unconditionally agrees to be personally bound by, and personally liable for, the breach of each and every provision in the Agreement, both monetary obligations and obligations to take or refrain from taking specific actions, or to engage or refrain from engaging in specific activities.

Source: Item 23 — RECEIPTS (FDD pages 45–180)

What This Means (2025 FDD)

According to the 2025 Bumper Man Franchise Disclosure Document, if the franchisee is a business entity, each principal holding equity interest in the franchisee must execute and deliver a Guaranty and Undertaking of Obligations to Bumper Man. This requirement extends to any spouse or relative of the franchisee authorized by Bumper Man to perform obligations related to the Bumper Business.

The Guaranty and Undertaking of Obligations ensures that the principal personally guarantees the franchisee's performance and payment obligations under the Franchise Agreement. This means the principal is personally liable for any breaches of the agreement, including monetary obligations and specific actions or inactions required by the agreement. The principal also agrees to make any payment or performance required under the agreement if the franchisee fails to do so.

The Guaranty and Undertaking of Obligations to the Franchise Agreement is detailed in Exhibit B. This exhibit outlines the terms of the guaranty, including the principal's acknowledgement of their obligations and agreement to be bound by the terms of the Franchise Agreement. The principal's obligations extend beyond the term of the agreement as specified within the agreement itself.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.