Is the All County Guaranty binding on the guarantor's successors and assigns?

According to All County's 2025 Franchise Disclosure Document, the Guaranty is binding on the guarantor's successors and assigns. This means that the obligations of the guarantor under the franchise agreement will continue even if the guarantor's ownership or control of their assets changes. This ensures that All County has recourse to the guarantor's assets even if the guarantor attempts to transfer them to someone else.

Specifically, the FDD states that the 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." This clause ensures that All County's rights under the Guaranty are protected, even if the guarantor's business or personal circumstances change.

However, the guarantor cannot assign their obligations under the Guaranty without All County's prior written consent. This provision prevents the guarantor from unilaterally transferring their obligations to a third party without All County's approval. This protects All County from having to accept a substitute guarantor who may not be as financially sound or reliable as the original guarantor. This is a fairly standard clause in franchise agreements, as franchisors want to ensure the financial stability of their franchisees.