factual

Is the Pearce Bespoke Guaranty considered irrevocable during the term of the Franchise Documents?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

This Personal Guaranty and Assumption of Obligations (this "Guaranty") is given by the undersigned individuals identified as the owners of Franchisee in Attachment A.

In consideration of, and as an inducement to, the execution of that certain franchise agreement of even date herewith ("Franchise Agreement") by the parties listed as Franchisor and Franchisee in the Franchise Agreement, the undersigned hereby personally and unconditionally, jointly and severally: guaranties to Franchisor and its successors and assigns, for the Term of the Franchise Agreement and, including any renewal thereof, as provided in the Franchise Agreement, that Franchisee shall punctually pay and perform each and every undertaking, agreement and covenant stated in the Agreement and any documents, agreements, and instruments signed with or in connection with the Franchise Agreement (collectively, the "Franchise Documents"); and (2) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Franchise Documents applicable to the owners of Franchisee.

The undersigned waives:

    1. acceptance and notice of acceptance by Franchisor of the foregoing undertakings.
    1. notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed.
    1. protest and notice of default to any party with respect to the indebtedness of non-performance of any obligations hereby guaranteed.
    1. any right the undersigned may have to require that an action be brought against Franchisee or any other person as a condition of liability; and
    1. any and all other notices and legal or equitable defenses to which the undersigned may be entitled.

The undersigned consents and agrees that:

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Personal Guaranty provided by owners/shareholders is effective for the term of the Franchise Agreement, including any renewals. By signing the Guaranty, the guarantor unconditionally guarantees the franchisee's performance of all obligations under the Franchise Documents.

Specifically, the guarantor commits to ensuring the franchisee punctually pays and performs every undertaking, agreement, and covenant outlined in the Franchise Agreement and associated documents. This includes any extensions or renewals of the agreement. The guarantor also agrees to be personally bound by and liable for any breaches of the Franchise Documents applicable to the franchisee's owners.

Furthermore, the guarantor waives several rights, including the right to require Pearce Bespoke to first bring an action against the franchisee before seeking recourse from the guarantor. The guarantor also consents to be bound by the terms of the guaranty. This arrangement ensures that Pearce Bespoke has recourse to the personal assets of the franchisee's owners should the franchisee fail to meet its obligations, providing an additional layer of security for Pearce Bespoke.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.