What exhibit in the Jersey Mikes Development Agreement contains the Guaranty and Assumption of Obligations that all Principals of Developer must execute?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.9 By their signatures, each of Developer's Principals who sign this Agreement acknowledges and accept the duties and obligations imposed upon each of them, individually, by the terms of this Agreement. All Principals of Developer shall execute the Guaranty and Assumption of Obligations attached as Exhibit F-1 and made a part of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, all Principals of the Developer must execute a Guaranty and Assumption of Obligations, which is attached as Exhibit F-1 to the Development Agreement. This requirement ensures that the individuals with significant control or ownership in the developing entity personally guarantee the entity's obligations under the Development Agreement.
This means that if the developing entity fails to meet its financial or contractual obligations to Jersey Mikes, Jersey Mikes can seek recourse directly from the Principals who signed the Guaranty. This provides Jersey Mikes with an additional layer of security and assurance that the Development Agreement will be honored.
For a prospective Jersey Mikes area developer, this requirement means that they, along with any other Principals in their developing entity, will be personally liable for the entity's performance under the Development Agreement. They should carefully review the terms of the Guaranty and Assumption of Obligations in Exhibit F-1 to understand the full extent of their personal liability. It is common practice in franchising for franchisors to require personal guarantees from key individuals to ensure commitment and accountability.