Does the Principal acknowledge anything further regarding the Bumper Man agreement?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Principal further acknowledges and agrees as follows:
- (a) it has read the terms and conditions of the Agreement and acknowledges that the execution of this Guaranty is in partial consideration for, and a condition to Franchisor's execution of the Agreement, and Franchisor would not have granted such rights without the execution of this Guaranty by each of the undersigned
- (b) this Guaranty will remain in force notwithstanding the death of the undersigned, and will be binding on the undersigned's personal representatives; and
- (c) this Guaranty will continue and will be enforceable notwithstanding any change in the name or the constitution of Franchisor or Franchisee.
Principal represents and warrants that the following is a complete and accurate list of all Principals of Franchisee and a full description of the nature and extent of each Principal's Equity Interest in Franchisee. Franchisee, and Principal as to its Equity Interest, represents and warrants that Principal is the sole and exclusive legal and beneficial owner of its Equity Interest in Franchisee, free and clear of all liens, restrictions, agreements and encumbrances of any kind or nature, other than those required or permitted by this Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, the Principal acknowledges several key aspects of the agreement. The Principal confirms they have read and understood the terms and conditions of the Franchise Agreement. This acknowledgment is a crucial part of the agreement, as Bumper Man would not grant franchise rights without the Principal's guarantee. The Principal's execution of the Guaranty is a condition for the franchisor to execute the agreement.
Furthermore, the Principal's obligations under the Guaranty extend beyond their lifetime, remaining in force even after their death and binding their personal representatives. The Guaranty also remains enforceable despite any changes to the name or structure of either Bumper Man (the Franchisor) or the Franchisee. This ensures the continuity and stability of the agreement, protecting Bumper Man's interests.
Additionally, the Principal represents and warrants that the list of all Principals and their Equity Interest in the Franchisee is complete and accurate. The Principal also confirms that they are the sole and exclusive legal and beneficial owner of their Equity Interest, free from any liens, restrictions, or encumbrances, except as permitted by the Guaranty. This provides Bumper Man with assurance regarding the ownership structure and financial stability of the Franchisee.