Does the Bumper Man Guaranty cover both monetary and non-monetary obligations?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
For the Term and afterward as provided in the Franchise Agreement and except as otherwise provided in this Addendum, Certified Technician will punctually pay and perform each and every undertaking, agreement, covenant and obligation set forth in the Franchise Agreement. Certified Technician represents that each and every representation and warranty set forth in the Franchise Agreement is true, complete and accurate as to Certified Technician, including without limitation representations, warranties and covenants described in the following sections of the Agreement: Section 10 (Representations, Warranties and Covenants), Section 13 (Insurance) and Exhibit E (Insurance Requirements), Section 17 (Restrictive Covenants) and Section 20 (Indemnification), and Certified Technician hereby unconditionally agrees to be bound by each and every provision in the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions, or to engage or refrain from engaging in specific activities, and liable for, its breach of any provision of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Guaranty and Undertaking of Obligations covers both monetary and non-monetary obligations. Principals of the franchisee, as well as any spouse or relative authorized to perform obligations related to the Bumper Business, must execute and deliver this Guaranty to Bumper Man. This ensures that these individuals are also bound by the terms of the Franchise Agreement.
The document specifies that the Certified Technician will punctually pay and perform each and every undertaking, agreement, covenant and obligation set forth in the Franchise Agreement. The Certified Technician unconditionally agrees to be bound by each and every provision in the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions, or to engage or refrain from engaging in specific activities, and liable for, its breach of any provision of the Franchise Agreement.
This means that the Guaranty extends beyond just financial responsibilities. It includes obligations to take or refrain from taking specific actions, or to engage or refrain from engaging in specific activities. For example, it could include adhering to operational standards, maintaining confidentiality, or complying with non-compete clauses. This comprehensive coverage protects Bumper Man from potential losses or damages resulting from a franchisee's failure to meet any aspect of their contractual obligations, not just monetary ones.
For a prospective Bumper Man franchisee, this means that anyone acting as a principal or authorized to perform obligations must understand that the Guaranty is a broad commitment. It covers not only financial obligations but also adherence to all the operational and behavioral requirements outlined in the Franchise Agreement. Therefore, it is crucial to carefully review and understand all aspects of the Franchise Agreement before signing the Guaranty.