Is the Pearce Bespoke Personal Guaranty attached to both the Franchise Agreement and the Area Development Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT B - PERSONAL GUARANTY OF OWNER/SHAREHOLDER
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Personal Guaranty is specifically tied to the Franchise Agreement. Attachment B of the Franchise Agreement includes a Personal Guaranty where the undersigned owners of the franchisee guarantee the franchisee's obligations under the Franchise Agreement.
The Personal Guaranty ensures that the franchisee will fulfill all obligations, agreements, and covenants stated in the Franchise Agreement and any related documents. The guarantor agrees to be personally bound by and liable for any breaches of the Franchise Documents applicable to the owners of the franchisee.
While the FDD mentions an amendment to the Area Development Agreement required by the State of Maryland, it does not explicitly state that the Personal Guaranty extends to the Area Development Agreement. A prospective Pearce Bespoke franchisee should confirm with the franchisor whether a separate personal guaranty or similar obligation exists for the Area Development Agreement, or if the existing guaranty also covers obligations under that agreement.