Does the All County Guaranty agreement benefit All County's successors and assigns?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.5. This Guaranty shall be binding on each Guarantor and his respective successors and assigns, and shall inure to our benefit and the benefit our successors and assigns. The Guarantor may not assign his obligations hereunder without our prior written consent.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Guaranty agreement does extend to the benefit of All County's successors and assigns. This means that if All County is acquired by another company or transfers its rights, the obligations of the guarantor under the agreement will also be enforceable by the new entity.
Specifically, the guaranty ensures that the guarantor's obligations are not diminished or affected by any extensions of time or credit that All County might grant to the franchisee. The guarantor remains liable even if All County accepts partial payments or compromises claims. This liability continues throughout the term of the franchise agreement and beyond.
This provision protects All County and its successors by ensuring that the guaranty remains in effect regardless of changes in ownership or management. It also prevents the guarantor from assigning their obligations without All County's written consent, further solidifying All County's position. The guarantor's obligations are binding on their successors and assigns as well, creating a comprehensive safety net for All County.