What does the Principal of a Certified Technician personally and unconditionally guarantee to Bumper Man?
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 Certified Technician fails or refuses punctually to do so.
Principal consents and agrees that such liability will not be contingent or conditioned upon pursuit by Franchisor of any remedies against Certified Technician or any other Person and waives any right it may have to require that an action be brought against Certified Technician or any other Person as a condition of his or her liability. Principal further waives protest and notice of default, demand for payment or nonperformance or any obligations guaranteed, 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 indulgence 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 Certified Technician arising as a result of the undersigned's execution of and performance under this Guaranty.
This Guaranty and all claims arising from, under or with respect to the relationship between Franchisor and Principal(s) will be interpreted, enforced and governed by the laws of Texas (without regard to Texas conflicts of law rules).
Principal further acknowledges and agrees as follows:
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the Principal of a Certified Technician provides an unconditional personal guarantee to Bumper Man, Inc. This guarantee covers the Certified Technician's obligations under the Franchise Agreement. Specifically, the Principal commits to being personally bound by and liable for any breach of the agreement. This includes both monetary obligations, such as fees and payments, and non-monetary obligations, such as adhering to operational standards and refraining from specific actions.
This means that if the Certified Technician fails to meet their obligations, Bumper Man can seek recourse directly from the Principal. The Principal agrees to fulfill any payment or performance required under the agreement if the Certified Technician defaults. This liability is not contingent on Bumper Man first pursuing remedies against the Certified Technician or any other party. The Principal also waives any right to demand that Bumper Man take action against the Certified Technician before seeking recourse from them.
Furthermore, the Principal's liability remains unaffected by any extensions of time, credit, or other allowances that Bumper Man may grant to the Franchisee or any other person. This includes accepting partial payments or compromising claims. The guarantee remains in effect throughout the term of the agreement and is irrevocable. The Principal also waives any rights to payments or claims for reimbursement or subrogation against the Certified Technician that may arise from their performance under the guarantee.
This arrangement provides Bumper Man with a significant layer of financial security and assurance that the obligations under the Franchise Agreement will be met. For a prospective franchisee considering using a Certified Technician, it is crucial to understand the implications for the Certified Technician's Principal, as they are taking on a substantial personal financial risk. The agreement is governed by Texas law, which should be considered when evaluating the terms of the guarantee.