Is there a deadline specified in the Cool Binz franchise agreement for executing the personal guaranty?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
nt. 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.
- c.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the personal guaranty must be executed upon the legal entity's execution of the Franchise Agreement. Specifically, if the franchisee is a corporation, each of the franchisee's shareholders and their spouses must execute the undertaking. If the franchisee is a partnership, each of the franchisee's general partners and their spouses must execute the undertaking. If the franchisee is a limited liability company, each of the franchisee's members and managers and their spouses must execute the undertaking.
This means that all relevant parties (shareholders, partners, members, managers, and their spouses) are required to sign the personal guaranty at the same time the franchise agreement is signed by the business entity. The personal guaranty ensures that these individuals are personally liable for the financial and performance obligations of the Cool Binz franchise. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee's business entity fails to meet its obligations.
The personal guaranty must be in the form attached as Exhibit D to the Franchise Agreement or in such other form as Cool Binz may prescribe from time to time. Franchisees should carefully review the terms of the personal guaranty with their legal advisors to fully understand the extent of their personal liability. Franchisees should also note that Cool Binz must receive copies of documents and resolutions from the legal entity's board of directors or managers authorizing its entry into the Franchise Agreement upon request.