Is there a specific deadline by which the personal guaranty must be executed for a Cool Binz franchise?
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 the 2025 Cool Binz Franchise Disclosure Document, if the franchisee is a legal entity such as a corporation, partnership, or limited liability company, all general partners, members, and direct or indirect equity holders must execute an agreement personally guaranteeing the legal entity's obligations to Cool Binz. This personal guarantee must be executed upon the legal entity's execution of the Franchise Agreement.
This means that as a prospective Cool Binz franchisee, if your business is structured as a legal entity, you and all relevant parties (partners, members, shareholders, and their spouses) must sign the personal guaranty at the same time the legal entity signs the Franchise Agreement. The personal guaranty ensures that these individuals are personally liable for the business's obligations to Cool Binz.
The personal guaranty must 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 requirement is fairly standard in franchising, as it provides the franchisor with additional security and recourse in case the franchisee entity defaults on its obligations.