What form must the personal guaranty be in for a Cool Binz franchise?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Copies of such documents and of resolutions of the legal entity's board of directors or managers authorizing its entry into this Agreement shall be furnished to us upon request.
- b All general partners, members and all direct and indirect holders of equity interest shall, upon the legal entity's execution of this Agreement, execute an agreement personally guaranteeing to us the full payment and performance of the legal entity's obligations to us and undertaking to be bound, individually, jointly and severally, by all the terms of this Agreement including, without limitation, the restrictions on assignment contained herein.
The personal guaranty shall be in the form attached hereto as Exhibit D or in such other form as we may from time to time prescribe.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, all general partners, members, and direct/indirect equity holders must execute an agreement personally guaranteeing the legal entity's obligations to Cool Binz. This agreement ensures full payment and performance of all obligations, binding them individually, jointly, and severally to the terms of the Franchise Agreement. This includes all assignment restrictions.
The personal guaranty must be in the form attached as Exhibit D to the Franchise Agreement or in any other form that Cool Binz may prescribe from time to time. This means that Cool Binz retains the right to modify the guaranty form as they see fit.
Prospective franchisees should carefully review Exhibit D and understand the full scope of their personal guarantee, as it could have significant financial implications. They should also inquire whether Cool Binz intends to use a form other than Exhibit D, and if so, request a copy for review prior to signing the Franchise Agreement.