Does the transfer of any interest in the Central Bark Doggy Day Care Agreement affect the Guaranty?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) you and any person or entity obligated under this Agreement or Guaranty must be in compliance with your or its obligations;
- (ii) you and the proposed assignee and its owners (if the assignee is a Business Entity) must provide all information and documents we request regarding the Assignment and the proposed assignee and its owners or Affiliates;
- (iii) you must provide us with executed versions of any relevant documents to effect the Assignment, and all other information we request about the proposed Assignment;
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to the 2025 Central Bark Doggy Day Care FDD, if you or any person or entity obligated under the Guaranty are not in compliance with your obligations, Central Bark Doggy Day Care may not approve a proposed assignment. In cases where the assignee is a business entity, the proposed assignee and its owners must provide all information and documents that Central Bark Doggy Day Care requests regarding the assignment.
Central Bark Doggy Day Care may condition its approval of a proposed assignment in any manner it deems necessary to protect the Central Bark brand and its interests in the system and the agreement. This includes ensuring that you and anyone obligated under the Guaranty are in compliance with their obligations.
Therefore, a transfer of interest in the Central Bark Doggy Day Care Agreement could affect the Guaranty if the guarantor is not in compliance with their obligations under the agreement or Guaranty. Prospective franchisees should carefully review the terms of the Guaranty and ensure they understand their obligations before signing the Franchise Agreement.