If the Cool Binz franchisee is a partnership, who is required to execute the undertaking?

According to Cool Binz's 2025 Franchise Disclosure Document, if the franchisee is a partnership, each of the franchisee's general partners and their spouses must execute the undertaking. This requirement is also applicable if the franchisee is a corporation or a limited liability company (LLC). In the case of a corporation, each of the franchisee's shareholders and their spouses must execute the undertaking. If the franchisee is an LLC, each of the franchisee's members and managers and their spouses must execute the undertaking.

This undertaking is a personal guaranty, meaning that these individuals are personally guaranteeing the obligations of the franchise to Cool Binz. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the franchisee owners if the business fails to meet its financial or other obligations under the franchise agreement. The personal guaranty is attached to the Franchise Agreement as Exhibit D.

For a prospective Cool Binz franchisee, this means that if you are entering into the franchise agreement as a partnership, corporation, or LLC, you and your partners, shareholders, members, or managers, as well as your spouses, will be required to sign a personal guaranty. This is a significant commitment, as it puts your personal assets at risk. It is important to carefully consider the implications of this personal guaranty before entering into a franchise agreement with Cool Binz. Franchisees should consult with a financial advisor and attorney to fully understand the risks and obligations associated with signing a personal guarantee.