What is the scope of the 'other agreement' mentioned in the Cool Binz personal guaranty, besides the Franchise Agreement?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Copies of such documents and of resolutions of the legal entity's board of directors or managers authorizing its entry into this Agreement shall be furnished to us upon request.
- 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)
Based on the 2025 Cool Binz 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 entity's obligations to Cool Binz. This guaranty extends to full payment and performance of all obligations under 'this Agreement,' which refers to the Franchise Agreement itself. The personal guaranty ensures that individuals are bound by the terms of the Franchise Agreement, including restrictions on assignment. The specific form of the personal guaranty is attached as Exhibit D or another form prescribed by Cool Binz. This requirement ensures Cool Binz can seek recourse directly from individuals associated with the franchisee entity, not just the entity itself, for any failures in payment or performance. This is a common practice in franchising to provide additional security to the franchisor.