Is the grant of the Cool Binz franchise dependent on the execution of the personal guaranty by the required parties?

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, Cool Binz requires a personal guaranty from certain individuals. Specifically, all general partners, members, and all direct and indirect holders of equity interest must execute an agreement personally guaranteeing the legal entity's obligations to Cool Binz. This guaranty ensures the full payment and performance of the legal entity's duties to Cool Binz under the franchise agreement. The individuals are bound individually, jointly, and severally by all terms of the 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 is in place to provide Cool Binz with additional security and recourse in case the franchisee, as a legal entity, fails to meet its financial or other obligations. By having the individuals with ownership interests personally guarantee the obligations, Cool Binz aims to ensure a higher level of commitment and accountability.

For a prospective Cool Binz franchisee, this means that if you operate your franchise through a corporation, LLC, or partnership, you and your partners or equity holders will be required to sign a personal guaranty. This guaranty makes you personally liable for the debts and obligations of the franchise, which could put your personal assets at risk if the business fails. It is important to carefully review the terms of the personal guaranty and understand the full extent of your obligations before signing the franchise agreement. Franchisees should consult with legal and financial advisors to fully understand the implications of providing a personal guarantee.