For Burneys Sweets More, what specific non-solicitation provisions are Guarantors bound by?
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. Franchisor may proceed against each Guarantor and Franchisee jointly and severally, or Franchisor may, at its option, proceed against any Guarantor, without having commenced any action, or having obtained any judgment against Franchisee. Each Guarantor agrees to pay all reasonable attorneys' fees and all costs and other expenses incurred in any collection or attempt to collect amounts due pursuant to this Personal Guaranty or any negotiations relative to the obligations hereby guaranteed or in enforcing this Personal Guaranty against any Guarantor. This Personal Guaranty is enforceable by and against the respective administrators, executors, heirs, successors, and assigns of each Guarantor, and the death of any Guarantor will not terminate the liability of such Guarantor or limit the liability of other Guarantors hereunder.
- C. Each Guarantor consents and agrees that: (1) each Guarantor's liability will not be contingent or conditioned upon Franchisor's pursuit of any remedies against the Franchisee or any other person; (2) such liability will not be diminished, relieved or otherwise affected by the Franchisee's insolvency, bankruptcy or reorganization, the invalidity, illegality or unenforceability of all or any part of the Agreement, or the amendment or extension of the Agreement with or without notice to any or all Guarantors; (3) any liability shall not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence which Franchisor may grant to Franchisee or to any other person, including the acceptance of any partial payment or
performance, or the compromise or release of any claims, none of which shall in any way modify or amend this Personal Guaranty, which shall be continuing and irrevocable; and (4) this Personal Guaranty shall apply in all modifications to the Agreement of any nature agreed to by Franchisee with or without any Guarantor receiving notice thereof.
- D. Each Guarantor waives: (1) notice of demand for payment of any indebtedness or on performance of any obligations hereby guaranteed;
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More FDD, Guarantors are bound by the non-solicitation provisions outlined in the franchise agreement. Specifically, each Guarantor agrees to be personally bound by the non-solicitation provisions contained within the agreement. This obligation extends to all terms and conditions as if the Guarantor had signed the original agreement. This is detailed in the Personal Guaranty and Agreement to be Bound Personally by the Terms and Conditions of the Franchise Agreement.
During the initial term of the franchise agreement, Guarantors are prohibited from soliciting customers and vendors of Burneys Sweets More without prior written consent from the Franchisor. This means that Guarantors cannot attempt to divert or solicit any vendor that has done business with the Burneys Sweets More shop during the one-year period before the agreement's expiration, termination, or non-renewal. They are also barred from soliciting or diverting any customer who was a customer of the shop during the same one-year period to a competitive business.
After the termination, expiration, or non-renewal of the franchise agreement, the non-solicitation covenant remains in effect during the restrictive period. The restrictive territory includes the location of the franchised business, the territory served by the franchisee, territories where Burneys Sweets More or its affiliates operate, territories of other Burneys Sweets More franchisees, and an area within a 10-mile radius of the franchised business location. This ensures that for a certain time and within a defined area, the Guarantors cannot unfairly compete by leveraging knowledge and relationships gained during the franchise term.