What is the date that the Kidokinetics Franchisee's Personal Guaranty and Covenant is given?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Franchisee's Personal Guaranty and Covenant (this "Guaranty") is given by each of the |
|---|
| undersigned (each, a "Guarantor") on [], 20 to Kidokinetics Franchise LLC, a Florida |
| limited liability company ("Franchisor"), in order to induce Franchisor to enter into that certain Franchisor |
| Agreement dated of even date herewith (the "Franchise Agreement") with, |
| a("Franchisee"). |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Franchisee's Personal Guaranty and Covenant is given by each guarantor on a specific date in 20--. The exact date is indicated by a blank space, represented as "[], 20", in the document. This guaranty is provided to Kidokinetics Franchise LLC to encourage the Franchisor to enter into a Franchise Agreement with the Franchisee. The Franchise Agreement is dated of even date with the Guaranty.
For a prospective Kidokinetics franchisee, this means that as part of the franchising process, a personal guaranty is required. This guaranty ensures that the franchisee will uphold their obligations under the Franchise Agreement. The personal guaranty is signed on the same day as the Franchise Agreement.
It is important for potential franchisees to understand the implications of signing a personal guarantee, as it makes them personally liable for the business's obligations. Therefore, a prospective franchisee should seek legal counsel to fully understand the terms and conditions of the guaranty before signing the agreement. They should also confirm the exact date to be entered on the Guaranty document with Kidokinetics.