Under the Bumper Man Guaranty, what is a 'Guarantor' defined as?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY is made this day of,, by and among |
|---|
| Bumper Man, Inc., a Texas corporation ("BMI") and the undersigned. |
| NOW IT IS HEREBY AGREED AS FOLLOWS: |
| In consideration of BMI's entering into the Promissory Note dated with |
| , a, as Maker (the "Note"), each of the undersigned |
| owners of the outstanding ownership interests in Maker and any other parties who sign |
| counterparts of this Guaranty (referred to herein individually as a "Guarantor" and collectively |
| as "Guarantors") hereby personally and unconditionally guarantees to BMI and its successors |
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, a Guarantor under the Guaranty agreement is defined as the owners of the outstanding ownership interests in Maker and any other parties who sign counterparts of the Guaranty. Maker is defined as the entity entering into the Promissory Note with Bumper Man, Inc.
In simpler terms, the Guarantor is an individual or entity that agrees to be responsible for the financial obligations of the franchisee (Maker) if the franchisee fails to meet those obligations under the Promissory Note. This personal guaranty ensures that Bumper Man has recourse to the Guarantor's assets if the franchisee defaults on their payments.
This requirement is a standard practice in franchising, especially when the franchisee is a business entity (like a corporation or LLC) rather than an individual. The personal guaranty provides an additional layer of security for Bumper Man, ensuring that there is a responsible party who is personally liable for the debt. Prospective franchisees should carefully consider the implications of signing a personal guaranty, as it puts their personal assets at risk if the franchise business fails.