Does the Pearce Bespoke Guaranty remain in effect after the terms of the Pearce Bespoke Franchise Documents?
Pearce_Bespoke Franchise · 2025 FDDAnswer 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:
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- acceptance and notice of acceptance by Franchisor of the foregoing undertakings.
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- notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed.
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- protest and notice of default to any party with respect to the indebtedness of non-performance of any obligations hereby guaranteed.
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- 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
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- 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 the owners of the Franchisee extends for the Term of the Franchise Agreement, including any renewals. This means that the guaranty remains in effect as long as the Franchise Agreement is active, covering the initial term and any subsequent renewal terms, provided such renewals are in accordance with the Franchise Agreement.
The Personal Guaranty ensures that the Franchisee punctually pays and performs all obligations under the Franchise Agreement and associated documents. The owners of the Franchisee are personally bound by and liable for any breaches of the Franchise Documents. This provides Pearce Bespoke with a direct avenue to pursue the owners personally for any failures or breaches by the Franchisee entity.
Specifically, the guarantor waives rights such as requiring action against the Franchisee first and waives notices related to acceptance, demand for payment, or default. This underscores the comprehensive and unconditional nature of the guaranty, ensuring Pearce Bespoke's protection throughout the duration of the franchise relationship, including any renewals. Prospective franchisees should carefully consider the implications of this personal guaranty, as it places their personal assets at risk should their franchise fail to meet its obligations.