Who gives the Guaranty and Undertaking of Obligations to Bumper Man?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Business Entity Franchisee.
- (i) Franchisee warrants that it is duly organized or formed and validly existing in good standing under the laws of the jurisdiction of its incorporation or formation; it has the necessary consents, approvals, licenses and/or permits to carry out the business activities contemplated by this Agreement; it will furnish such other information about its organization or formation as Franchisor may reasonably request to confirm the same; and the execution and delivery of this Agreement has been duly authorized by it.
- (ii) Franchisee will disclose to Franchisor all Principals holding any Equity Interests in Franchisee. Franchisee will provide Franchisor with such financial information as Franchisor may periodically request from Franchisee and each Principal, including copies of annual financial statements or tax returns.
- (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.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, each Principal holding any Equity Interests in the Franchisee is required to execute and deliver a Guaranty and Undertaking of Obligations to the Franchisor, Bumper Man, Inc. Additionally, any spouse or relative of the Franchisee who has been authorized by Bumper Man to perform obligations related to the Bumper Business must also provide this guarantee.
The Guaranty and Undertaking of Obligations ensures that the Principal is personally and unconditionally guaranteeing that the Certified Technician will fulfill all obligations set forth in the Franchise Agreement. This includes, but is not limited to, financial obligations, specific actions, and adherence to operational standards. The Principal also confirms that all representations made by the Certified Technician are accurate and complete.
This requirement protects Bumper Man by ensuring that individuals with a significant stake in the franchise are personally liable for its performance. It also extends liability to authorized family members, broadening the scope of accountability. For a prospective franchisee, this means that if you have investors or if your spouse/relatives are involved in the business, they will need to sign this guarantee, making them personally responsible for the franchise's adherence to the franchise agreement.
Furthermore, the Principal acknowledges being included in the term "Principal" as described in Section 1 of the Agreement, and 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. This includes obligations described in Section 10 (Representations, Warranties and Covenants), Section 16 (Transferability of Interest), Section 17 (Restrictive Covenants) and Section 20 (Indemnification).