Is the personal guaranty in the Cool Binz franchise agreement considered unconditional?
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 partnership, LLC, or corporation, all general partners, members, and direct/indirect equity holders must execute an agreement personally guaranteeing the legal entity's obligations to Cool Binz. This guaranty binds them individually, jointly, and severally to all terms of the Franchise Agreement.
The personal guaranty will be in the form attached as Exhibit D to the Franchise Agreement or in another form that Cool Binz may prescribe from time to time. This means that the specific terms and conditions of the guaranty, including whether it is unconditional, are detailed in Exhibit D and subject to change by Cool Binz.
Prospective Cool Binz franchisees should carefully review Exhibit D of the Franchise Agreement to understand the full scope and conditions of the personal guaranty. They should pay close attention to provisions regarding the extent of liability, any conditions that might limit the guaranty, and the circumstances under which the guaranty may be enforced. Understanding these terms is crucial for assessing the personal financial risk associated with the franchise.