What is the definition of 'Agreement' in the context of the Floyds 99 Guaranty?

Based on the 2025 Floyds 99 Franchise Disclosure Document, the term 'Agreement' in the context of the Guaranty and Assumption of Developer's Obligations refers to the Development Agreement between Floyds 99 Franchising, LLC and the Developer. This agreement outlines the terms and conditions under which the developer is authorized to develop Floyds 99 Barbershops within a specific area. The Guaranty ensures that if the Developer is an entity, all owners of the Developer must sign the Guaranty and Assumption of Developer's Obligations, as detailed in Exhibit II of the Development Agreement.

This requirement is crucial for Floyds 99 to secure the obligations outlined in the Development Agreement. By having all owners of the developer entity sign the Guaranty, Floyds 99 ensures that these individuals are personally liable for the developer's performance and adherence to the agreement's terms. This provides an additional layer of security for Floyds 99, mitigating the risk of non-compliance or default by the developer entity.

For a prospective Floyds 99 developer, this means that if their development business is structured as an entity (e.g., LLC, corporation), all owners will be required to sign a personal guarantee. This is a standard practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the business owners if the business fails to meet its obligations. Therefore, individuals considering becoming Floyds 99 developers should be aware of this personal liability and factor it into their decision-making process.