Is the Bumper Man Guaranty continuing and irrevocable during the Term?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Principal consents and agrees that it will render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so.
Principal consents and agrees that its liability under this Guaranty will not be contingent or conditioned upon Franchisor pursuing any remedies against Franchisee or any other Person. Principal waives any right it may have to require that Franchisor bring an action against Franchisee or any other Person as a condition of its liability. Principal further waives protest and notice of Franchisee's default or nonperformance of any obligation that is guaranteed by Principal or notice of demand for payment issued by Franchisor, and any and all other notices and legal or equitable defenses to which Principal may be entitled in its capacity as guarantor.
Principal consents and agrees that such liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other concession that Franchisor may periodically grant to Franchisee or to any other Person, including, without limitation, the acceptance of any partial payment or performance or the compromise or release of any claims, none of which will in any way modify or amend this Guaranty, which will be continuing and irrevocable during the Term.
Principal waives all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the undersigned's execution of and performance under this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Guaranty provided by the Principal is designed to be both continuing and irrevocable throughout the term of the Franchise Agreement. This means that the Principal's obligations and liabilities under the Guaranty remain in effect for the entire duration of the agreement.
Specifically, the Principal agrees to be personally bound by and liable for any breaches of the Franchise Agreement, including both monetary obligations and required actions or inactions. This ensures that Bumper Man can seek recourse directly from the Principal if the franchisee fails to meet their obligations. The Guaranty is not contingent on Bumper Man first pursuing remedies against the franchisee, and the Principal waives any rights to require such action.
Furthermore, the Guaranty remains valid even if Bumper Man grants extensions of time, credit, or other concessions to the franchisee. These actions do not modify or amend the Guaranty, reinforcing its continuous and irrevocable nature. The Principal also waives any rights to payments or claims for reimbursement against the franchisee arising from their performance under the Guaranty.
This arrangement provides Bumper Man with a significant level of security, as it ensures that a responsible party is always liable for the franchisee's obligations. For a prospective franchisee, this highlights the importance of having a Principal who is financially stable and fully understands the obligations they are undertaking, as their personal assets could be at risk if the franchise fails to meet its contractual requirements.