For Burneys Sweets More, what specific non-compete provisions are Guarantors bound by?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Guarantors are bound by the non-compete provisions outlined in the franchise agreement. Specifically, each Guarantor (excluding those designated as "Spouse" and not "Owner") agrees to be personally bound by every term in the Agreement. This includes, but is not limited to, the non-compete and non-solicitation provisions.
This means that Guarantors are subject to the same restrictions as the franchisee regarding competitive activities during and after the franchise term. The Personal Guaranty ensures that Guarantors are held accountable as if they had signed the original franchise agreement with identical terms and conditions. This obligation extends to their heirs, successors, and assigns.
For a prospective Burneys Sweets More franchisee, this implies that anyone acting as a Guarantor, particularly owners or partners, must carefully review and understand the non-compete and non-solicitation clauses within the franchise agreement. They will be personally liable for upholding these obligations, which could significantly impact their future business ventures should the franchise agreement terminate. The FDD does not specify the exact terms of the non-compete or non-solicitation agreements, so it is important to review the full franchise agreement for details.