Which provisions govern the Burneys Sweets More Personal Guaranty?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
ENT
In consideration of the execution of the Franchise Agreement, (together with any revisions, modifications, and amendments thereto, the "Agreement") between DMG BURNEY, INC. ("Franchisor") and _____________________ ("Franchisee") dated of even date herewith, the undersigned (each a "Guarantor"), for themselves, their heirs, successors, and assigns, do jointly, individually, and severally hereby become surety and guarantor for the payment of all amounts and the performance of the covenants, terms, and conditions in the Agreement, to be paid, kept and performed by the Franchisee.
- A. Except for those designated as "Spouse" and not "Owner" in the signature block below, each Guarantor, individually and jointly, hereby agree to be personally bound by each and every condition and term contained in the Agreement, including but not limited to the noncompete, non-solicitation, dispute resolution, and indemnification provisions, and agree that this Personal Guaranty will be construed as though each Guarantor and each of its heirs, successors, and assigns executed an agreement containing the identical terms and conditions of the Agreement. If a Guarantor is an Owner, Guarantor hereby (1) makes all representations of, and (2) accepts and agrees to comply with all obligations of, owners, shareholders, members, and partners of the Franchisee as set forth in the Agreement.
- B. Each Guarantor's liability under this Personal Guaranty shall be direct, immediate, and independent of the liability of, and shall be joint and several with, Franchisee and, as applicable, any other guarantors of Franchisee. Each Guarantor shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the Personal Guaranty is outlined in Attachment 4 to the Franchise Agreement. This agreement stipulates that the guarantor(s) are liable for the franchisee's obligations.
The guarantor(s) agree to be personally bound by all terms of the Franchise Agreement, including non-compete, non-solicitation, dispute resolution, and indemnification provisions. If a guarantor is an owner, they must adhere to all owner obligations detailed in the Franchise Agreement.
The liability of each guarantor is direct, immediate, and independent, making them jointly and severally liable with the franchisee and any other guarantors. Guarantors must fulfill any payment or performance obligations if the franchisee fails to do so, ensuring the franchisor is protected against potential defaults by the franchisee.