What is Attachment 3 in the context of the Chocolate Bash franchise agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Attachment 3 to Franchise Agreement
GUARANTY AND NON-COMPETE AGREEMENT
This Guaranty and Non-Compete Agreement (this "Guaranty") is executed by the undersigned person(s) (each, a "Guarantor") in favor of Chocolate Bash Franchising, LLC, a Wyoming limited liability company ("CB Franchising").
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, Attachment 3 to the Franchise Agreement is a Guaranty and Non-Compete Agreement. This agreement is executed by each person, known as the Guarantor, in favor of Chocolate Bash Franchising, LLC.
In essence, this attachment ensures that if the franchisee is a business entity (like a corporation or LLC), each owner of that entity must personally guarantee the franchisee's obligations to Chocolate Bash. This means the owners are personally liable for the business's debts and responsibilities to the franchisor.
Additionally, the Guaranty includes a non-compete clause, restricting the guarantor from engaging in competitive activities against Chocolate Bash, protecting the franchisor's business interests. This is a standard practice in franchising to ensure the owners are fully committed to the franchise and do not use their knowledge to start a competing business.