Does the Cool Binz franchise agreement specify any exceptions to the personal guaranty requirement for certain shareholders, partners, or members?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Cool Binz's 2025 Franchise Disclosure Document, if the franchisee is a legal entity such as a corporation, partnership, or limited liability company, all general partners, members, and direct/indirect equity holders must execute a personal guaranty. This guaranty ensures they are individually, jointly, and severally bound by the terms of the Franchise Agreement. The personal guaranty must be in the form attached as Exhibit D to the Franchise Agreement or in another form prescribed by Cool Binz.
This requirement means that any individual with an ownership stake in the franchisee entity is personally responsible for the entity's obligations to Cool Binz. This includes financial obligations and adherence to all terms outlined in the agreement. Spouses of the shareholders, partners, and members must also execute the personal guaranty.
Prospective Cool Binz franchisees should carefully review Exhibit D to understand the full scope of the personal guaranty. They should also consult with legal and financial advisors to assess the implications of signing such a guarantee, as it puts their personal assets at risk if the franchise fails to meet its obligations.