What form does the personal guaranty of the Fly To Fit franchisee's obligations take?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Attachment 3 to Franchise Agreement
GUARANTY AND NON-COMPETE AGREEMENT
This Guaranty and Non-Compete Agreement (this "Guaranty") is executed by the undersigned person(s) (each, a "Guarantor") in favor of Fly To Fit Franchise, LLC, a Delaware Limited Liability Company ("Fly To Fit Franchise").
Background Statement: ____________________ ("Franchisee") desires to enter into a Franchise Agreement with Fly To Fit Franchise for the franchise of a Fly To Fit business (the "Franchise Agreement"; capitalized terms used but not defined in this Guaranty have the meanings given in the Franchise Agreement). Guarantor owns an equity interest in Franchisee. Guarantor is executing this Guaranty in order to induce Fly To Fit Franchise to enter into the Franchise Agreement.
Guarantor agrees as follows:
- **1.
Guaranty.** Guarantor hereby unconditionally guarantees to Fly To Fit Franchise and its successors and assigns that Franchisee shall pay and perform every undertaking, agreement and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of Franchisee to Fly To Fit Franchise, whether or not contained in the Franchise Agreement.
Guarantor shall render any payment or performance required under the Franchise Agreement or any other agreement between Franchisee and Fly To Fit Franchise upon demand from Fly To Fit Franchise.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if the franchisee is an entity, each owner must sign a personal guaranty, which is included as Attachment 3 to the Franchise Agreement. This guaranty ensures that the franchisee will fulfill all obligations to Fly To Fit. The guarantor unconditionally guarantees that the franchisee will pay and perform every undertaking, agreement, and covenant in the Franchise Agreement, as well as any other liabilities to Fly To Fit.
The guarantor is obligated to make any payment or performance required under the Franchise Agreement or any other agreement with Fly To Fit upon demand. This means that Fly To Fit can seek payment directly from the guarantor without first pursuing the franchisee. The guarantor also agrees to a non-compete agreement, preventing them from engaging with any competitor during the term of the Franchise Agreement and for a period of two years after the agreement expires or is terminated within a five-mile radius of the franchisee's territory or any other Fly To Fit business.
The guaranty also includes several waivers by the guarantor, such as waiving notice of acceptance, demand for payment, and any right to require Fly To Fit to take action against the franchisee before pursuing the guarantor. This underscores the comprehensive nature of the personal guarantee, placing significant responsibility on the guarantor to ensure the franchisee's compliance with the Franchise Agreement. The guarantor must also maintain the confidentiality of Fly To Fit's confidential information, and this obligation survives the termination or expiration of the Franchise Agreement indefinitely.