What state's laws govern the Chocolate Bash Guaranty?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
hall promptly designate a new Principal Executive, subject to CB Franchising's reasonable approval.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to CB Franchising, in the form of Attachment 3.
- 2.6 No Conflict. Franchisee represents to CB Franchising that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition
covenant) by entering into or performing under this Agreement, (ii) are not a
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, if the franchisee is an entity, each owner must sign a personal guaranty of the franchisee's obligations to CB Franchising, LLC. The guaranty is included as Attachment 3 to the Franchise Agreement. The Guaranty and Non-Compete Agreement states that it is executed in favor of Chocolate Bash Franchising, LLC, a Wyoming limited liability company.
The FDD does not specify which state's laws govern the Guaranty and Non-Compete Agreement. The agreement itself indicates that Chocolate Bash Franchising, LLC is a Wyoming limited liability company. However, the FDD also includes an addendum that addresses California franchise law, indicating that California law may be relevant to the franchise agreement.
A prospective franchisee should consult with a legal professional to fully understand which state's laws govern the Guaranty and Non-Compete Agreement, and how those laws may impact their obligations and rights.