What agreement are individuals or entities with 10% or more ownership in a Burros Fries franchise business bound to?

If the Franchisee is a corporation or limited liability company, partnership or other entity, certain provisions of this Agreement also apply to your shareholders, members, partners or owners. Any such entity may be referred to as an "Entity" and those who own the Entity may be referred to as "Owners." For ease of reference, Burros & Fries, Inc., will also be referred to as "we," "us" or "our" in this Agreement. The persons signing as Franchisee, Owners or Guarantors will also be referenced to herein individually as "you" or "yours" or collectively as "Franchisee."

SCHEDULE 3 FRANCHISE AGREEMENT: INDIVIDUAL GUARANTY (USE FOR CORPORATE, PARTNERSHIP OR OTHER ENTITY FRANCHISEE)

This Guaranty is a Schedule to the Franchise Agreement between Burros & Fries Franchise, Inc., a California corporation ("Franchisor") and ("Franchisee") dated the day of , 20.

• 1. The undersigned agree, individually and on behalf of his or her martial community, to personally and unconditionally guarantee the performance of Franchisee under the Franchise Agreement and to perform all obligations under this Agreement on default by Franchisee. The undersigned further agree to pay any judgment or award against Franchisee obtained by Franchisor. Guarantors are also bound by covenants of the Agreement that by their nature or terms survive the expiration or termination of the Agreement, including but not limited to noncompetition, indemnity and non-disclosure provisions.
• 1. Each Guarantor has consulted legal counsel of his/her own choosing as to his/her responsibilities and liabilities under this Guaranty.
• 1. Each Guarantor waives:
  • (a) Notice of demand for payment of any indebtedness or nonperformance of any obligations guaranteed;
  • (b) Protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations guaranteed;
  • (c) Any right he or she may have to require that an action be brought against Franchisee or any other person as a condition of liability;
• 1. Each Guarantor consents and agrees that:
  • (a) Liability under this Guaranty is joint and several with any other guarantor and the Franchisee;
  • (b) Each will render any payment or performance required under this Guaranty on demand, if Franchisee fails or refuses punctually to do so;
  • (c) Each will individually comply with the provisions and all subsections of the Agreements and associated documents;
  • (d) Liability is not contingent or conditioned on Franchisor's pursuit of any remedies against Franchisee or any other persons; and
  • (e) Liability is not affected by any extension of time, acceptance or part performance, release of claims, or other compromise that Franchisor may grant Franchisee or 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 Guaranty, which shall be continuing and irrevocable during the term of the Agreement.

Source: Item 22 — CONTRACTS (FDD page 53)