Are there any conditions under which BFG Holdco, Inc. would not guarantee Cool Binz's obligations?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, BFG Holdco, Inc., a Delaware corporation (the "Guarantor"), located at 3310 West End Avenue, Suite 620, Nashville, TN 37203, absolutely and unconditionally guarantees to assume the duties and obligations of Chem-Dry, Inc., NHance, Inc., 1-800 Water Damage International, LLC, Hoodz International, LLC, Ductz International, LLC, Patch Boys International, LLC, Plumberz International, LLC, Packoutz International, LLC, Safer Home Services International, LLC, Cool Binz International, LLC, Redbox+ International, LLC and JunkCo+ International, LLC, under their franchise registrations in each state where the franchises are registered, and under its Franchise Agreement identified in their Franchise Disclosure Documents issued March 28, 2025 (individually, each, a "Franchisor"), and as the Franchise Agreements may be entered into with all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever occurs first. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding, notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 62)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, BFG Holdco, Inc. guarantees the obligations of Cool Binz International, LLC under its franchise registrations and Franchise Agreement. The guarantee remains in effect until all obligations of Cool Binz to its franchisees are satisfied or the liability of Cool Binz to its franchisees under the Franchise Agreement has been completely discharged, whichever comes first.
BFG Holdco, Inc. is not discharged from liability if a franchisee's claim against Cool Binz remains outstanding, and notice of acceptance is waived. However, BFG Holdco, Inc. does not waive receipt of notice of default on the part of Cool Binz. This guarantee is binding on BFG Holdco, Inc. and its successors and assigns.
In essence, BFG Holdco, Inc.'s guarantee provides a level of security for Cool Binz franchisees, assuring that the franchisor's obligations will be met. However, the guarantee is not indefinite and ceases when all obligations are fulfilled or the liability is completely discharged. Prospective franchisees should understand the conditions under which this guarantee applies and its limitations.