Who is the Guaranty and Undertaking of Obligations given to for a Bumper Man franchise?
Bumper_Man Franchise · 2025 FDDAnswer 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.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, if the franchisee is a business entity, each principal holding equity interests in the franchisee must execute and deliver a Guaranty and Undertaking of Obligations to the franchisor. Additionally, any spouse or relative of the franchisee who is authorized by Bumper Man to perform obligations related to the Bumper Business must also provide this guarantee to the franchisor.
This requirement ensures that Bumper Man has recourse beyond the business entity itself, holding individuals with significant interest or involvement in the franchise personally responsible for upholding the franchise agreement. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.
For a prospective Bumper Man franchisee, this means that if you own the franchise through a corporation or LLC, you and any other principals with equity in the business, as well as any actively involved family members, will need to sign a personal guarantee. This legally binds you to the obligations outlined in the franchise agreement, potentially putting your personal assets at risk if the business fails to meet its contractual obligations.