Does the Cool Binz franchise agreement specify who the 'undersigned persons' are in the context of the personal guaranty?
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, all general partners, members, and all direct and indirect holders of equity interest must execute an agreement personally guaranteeing to Cool Binz the full payment and performance of the legal entity's obligations. This agreement makes them individually, jointly, and severally bound by all the terms of the Franchise Agreement.
Specifically, the personal guaranty must be in the form attached as Exhibit D to the Franchise Agreement or in such other form as Cool Binz may prescribe from time to time. This means that the exact terms and conditions of the personal guaranty are detailed in a separate exhibit, allowing Cool Binz some flexibility to modify the form as needed.
For a prospective Cool Binz franchisee, this requirement means that if you operate your franchise through a corporation, LLC, or partnership, you and all other equity holders will be personally liable for the franchise's financial and operational obligations to Cool Binz. This is a significant commitment and should be carefully considered with legal and financial advisors.